Qualcomm's Q2 2025: Unraveling Contradictions on Tariffs, Handset Demand, and AI's Role in ASPs

Tariff impact on business and customer behavior, handset market performance and demand drivers, impact of AI on ASPs, and handset market strength in China are the key contradictions discussed in Qualcomm's latest 2025Q2 earnings call.



Revenue and Segment Performance:
- Qualcomm reported non-GAAP revenues of $10.8 billion for fiscal Q2 2025, with QCT revenues at $9.5 billion.
- The Automotive and IoT revenues increased significantly by 59% and 27%, respectively.
- The growth was driven by strong demand across Handsets, Automotive, and IoT, exceeding revenue expectations.

AI and Modem Technology:
- Qualcomm's new X85 5G platform was announced, featuring advanced AI capabilities and high-speed connectivity.
- It supports 5G advanced capabilities with ultrafast peak download speeds up to 12.5 gigabits per second.
- The adoption of this platform is expected to enhance AI experiences and support new AI-powered services.

Market Expansion and Partnerships:
- Strong partnerships in the Automotive sector were reported, including 14 commercial vehicle launches and five ADAS programs.
- Qualcomm's Snapdragon Digital Chassis was adopted by several Chinese automakers like Nio and Zeekr.
- Expansion in this sector is supported by digi