The numbers
Qualcomm reported fiscal fourth-quarter and full-year 2026 results on Nov 4 local time, with handset chip revenue down 26% year on year. On the same day, AMD reported a record $13.4 billion in quarterly revenue, with data center revenue doubling year on year while gaming revenue fell 40%. The two chipmakers' results compare as follows:
| Company | Metric | Year-on-year change |
|---|---|---|
| Qualcomm | Handset chip revenue | -26% |
| AMD | Total quarterly revenue | $13.4 billion (record) |
| AMD | Data center revenue | Doubled |
| AMD | Gaming revenue | -40% |
Qualcomm did not disclose the specific revenue figure for its handset chip business or management commentary in the source material.
Analysis
Qualcomm's 26% year-on-year decline in handset chip revenue shows the direct hit to the chip giant from weak smartphone demand, putting pressure on its core business. AMD's results over the same period were sharply split: data center revenue doubled year on year and became the main driver of overall growth, while gaming revenue fell 40% year on year, a stark contrast to the strength in data centers.
AMD's gaming revenue fell 40 percent in an otherwise record $13.4 billion quarter.
——Ars Technica
The divergence shows that, with AI compute demand running hot, the data center chip market remains strong, while consumer electronics-related chip businesses face shrinking demand. Qualcomm's handset chip decline echoes AMD's gaming slump, both pointing to weak end-market demand for consumer electronics; AMD's doubled data center growth underscores continued heating up of AI infrastructure investment. The comparison between the two chip giants offers an important sample for observing structural changes in the semiconductor industry under the AI wave.
What's next
The market will watch Qualcomm's guidance on handset chip demand prospects on its earnings call, and whether AMD's data center growth can offset the gaming decline. In addition, both companies' outlooks for the next quarter will be key signals for judging whether the semiconductor industry's divergence will continue.