Qualcomm Inc. (NASDAQ:QCOM) rose in premarket trading Thursday after the chipmaker reported second-quarter results that topped Wall Street estimates, while issuing a softer-than-expected outlook.

Earnings Snapshot

Revenue for the quarter came in at $10.60 billion, down 2% from a year earlier but slightly above the $10.59 billion consensus estimate, according to Benzinga Pro. Adjusted earnings were $2.65 per share, exceeding expectations of $2.56.

For the third quarter, Qualcomm guided adjusted earnings of $2.10 to $2.30 per share, below the $2.45 estimate. Revenue is expected between $9.2 billion and $10.0 billion, also trailing the $10.27 billion consensus.

Automotive and AI Strategy

The company said its automotive segment has surpassed a $5 billion annual revenue run rate and is on track to exceed $6 billion by fiscal 2026, driven by adoption of its Snapdragon Digital Chassis platform.

Qualcomm highlighted "agentic AI" as a key growth driver, pointing to rising demand for devices capable of continuous processing, sensor fusion and task orchestration.

It also emphasized its Oryon CPUs, AI-focused NPUs and edge connectivity portfolio. The Snapdragon X2 PC platform has entered production, offering always-on AI features and up to roughly 30% performance gains in certain benchmarks.

Data Center Expansion

Qualcomm said development of data center CPUs and AI accelerators is progressing, with a custom silicon partnership underway with a major hyperscaler. Initial shipments are expected later this calendar year. Integration of Alphawave IP Group is also advancing, enhancing high-speed connectivity capabilities.

Handset Trends and Outlook

Smartphone demand remained steady, though Qualcomm shipped below demand levels as OEMs stayed cautious. China Android revenue is expected to bottom in the third quarter before improving. Memory constraints and higher costs are prompting device makers to reduce production and work through inventory.

Looking ahead, Qualcomm expects "agentic AI" smartphones to drive premium device demand into fiscal 2027, even as near-term pressures from memory supply dynamics persist.

QCOM Price Action: Qualcomm shares were up 10.96% at $173.10 during premarket trading on Thursday, according to Benzinga Pro data.

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