Qualcomm’s custom ASIC turn is not coming out of nowhere

Qualcomm reported a strong fiscal second quarter, with revenue of $10.6 billion and non-GAAP EPS of $2.65, ahead of consensus. The real strength, however, came from diversification rather than handsets: Automotive revenue hit a record $1.3 billion, up 38% year over year, and Qualcomm expects to exit fiscal 2026 at an automotive run rate above $6 billion. The new talking point is custom silicon for a leading hyperscaler, with shipments expected later this calendar year. That puts Qualcomm into a crowded and increasingly lucrative ASIC market, where Broadcom, Arm, Google, Amazon, and others are already well established.

^{Qualcomm has a strong quarter and points to custom silicon. (Source: Qualcomm)}

Qualcomm used its fiscal second-quarter earnings call to draw a line between the company it has been and the company it wants investors to see next. Revenue was $10.6 billion, and non-GAAP EPS was $2.65, slightly ahead of the Street’s revenue expectations and…