Qualcomm reported a strong Q2 for the fiscal year 2025, with revenues reaching $10.8 billion, surpassing market expectations. Notably, the semiconductor division contributed $9.5 billion, and the automotive and IoT businesses grew impressively by 59% and 27% compared to the previous year. CEO Cristiano Amon emphasized the growth potential of the company's non-mobile revenue, targeting $22 billion by 2029 as the demand for electric vehicles and smart homes surges.

However, despite the positive earnings report, Qualcomm's stock unexpectedly dropped 5% after hours to $140.01. Investors expressed concerns over three potential risks regarding Qualcomm's future operations: 1. US-China trade tensions, despite Qualcomm's products not being currently affected by tariffs; 2. Apple's strategy to produce its own modem chips, potentially reducing reliance on Qualcomm by 2027; and 3. High dependency on the Chinese market, which accounted for 46% of total revenues amid competition from local chip makers. Although growth in automotive and IoT segments indicates the effectiveness of its diversification strategy, external uncertainties continue to dampen investor sentiment.