Qualcomm CEO Cristiano Amon said China smartphone sales have hit a bottom and are expected to rebound during the current quarter [1].
The recovery is critical for the semiconductor giant as it seeks to offset underwhelming quarterly forecasts and pivot toward AI-driven hardware demand. A rebound in the Chinese market, combined with new enterprise ventures, could stabilize the company's long-term growth trajectory.
During an interview with CNBC journalist Jon Fortt on April 30, Amon highlighted the company's expanding footprint in the infrastructure sector. He said Qualcomm will begin shipping data-center chips to a large hyperscaler ahead of schedule [1]. This move signals a strategic push to diversify revenue streams beyond mobile handsets and into the cloud computing space.
Market reactions to the company's recent updates have been volatile. Qualcomm stock initially dropped about six percent after hours [3] following reports that the company's third-quarter results forecast was below expectations [4]. However, the stock reversed course as investors reacted to Amon's optimistic outlook on China and data-center traction.
Reports on the subsequent recovery vary. Some data indicates shares surged up to 11.2% in pre-market trading [3], while other reports state shares rose as much as 16% [2] following the CEO's comments.
Amon said the expected recovery in China is due to a combination of the market reaching its low point and increased demand for AI-integrated devices [5]. The shift toward AI-driven hardware is expected to catalyze a new upgrade cycle for consumers in the region.
This transition comes as the company manages a complex global supply chain. Amon said the worst of the memory crunch is over [6], suggesting that hardware availability will no longer be the primary bottleneck for shipment growth this year.
“China smartphone sales have hit a bottom and are expected to rebound this quarter.”
Qualcomm is attempting to transition from a mobile-centric business to a broader AI infrastructure provider. By securing a hyperscaler client for data-center chips and timing a recovery in the Chinese smartphone market, the company is trying to prove it can maintain growth despite a maturing global handheld device market.
