Qualcomm’s first quarter results were marked by robust growth in its core chipset business, with notable contributions from automotive and IoT segments. Management attributed the quarter’s performance to demand for premium Android smartphones, new design wins in automotive, and expanding industrial IoT applications. CEO Cristiano Amon cited the company’s “broadest product and IP portfolio” and highlighted rapid advancements in on-device AI as drivers of customer traction. Despite these strengths, the negative market reaction reflected investor concerns about rising inventory levels and the sustainability of demand in a volatile macroeconomic environment.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Qualcomm’s Q1 Earnings Call

• Joshua Buchalter (TD Cowen) asked about tariff impacts and order patterns. CEO Cristiano Amon stated guidance reflects current tariff assessments and that ordering patterns remain consistent, with no material pull-ins observed.
• Samik Chatterjee (JPMorgan) inquired on IoT growth drivers and recent M&A. CFO Akash Palkhiwala attributed upside to industrial demand and said acquisitions like Edge Impulse and FocusAI are building a scalable software platform for edge AI.
• Timothy Arcuri (UBS) questioned China business resilience amid tariffs and local competition. Amon replied that Snapdragon’s relevance and unique capabilities are sustaining demand, with no slowdown in design traction seen in China.
• Stacy Rasgon (Bernstein) probed on chipset gross margins and tariff-related assumptions. Palkhiwala pointed to small mix effects and minor direct tariff impacts, noting indirect effects are difficult to predict but closely monitored.
• Ross Seymore (Deutsche Bank) asked about operating expense management and capital returns as U.S. customer share declines. Palkhiwala said OpEx discipline allows investment to shift toward automotive and IoT, while a 100% free cash flow return target balances buybacks and M&A flexibility.

Catalysts in Upcoming Quarters

Over the next few quarters, the StockStory team will be monitoring (1) the pace of automotive and industrial IoT revenue growth, (2) adoption rates for new Snapdragon-based PCs and smart devices, and (3) how inventory levels evolve relative to end-market demand. Execution on product launches aimed at on-device AI and expansion into new verticals will be additional key signposts for Qualcomm’s progress.

Qualcomm currently trades at $156.31, up from $148.07 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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