Chip giant Qualcomm has posted stronger-than-expected quarterly results but its shares dipped 3% amid muted investor reaction.

The company reported US$11.3 billion in revenue for the September quarter, up 10% year-on-year and ahead of analyst forecasts.

Adjusted profit came in at US$3 a share, topping expectations of US$2.88. Qualcomm also projected first-quarter sales of about US$12.2 billion, with profit per share around US$3.40, both above Wall Street estimates.

However, investor enthusiasm dropped after a US$5.7 billion writedown related to a US tax change left Qualcomm with a US$3.1 billion net loss for the period.

Similar accounting hits have affected other tech giants including Meta.

While the numbers impressed on paper, analysts say investor hopes had climbed too high after recent stock gains.

Still, Qualcomm’s underlying performance suggests strength across its core markets.

Smartphone chip sales rose to US$7 billion, beating expectations, while the automotive division continued its rapid growth, generating US$1.05 billion in revenue.

Qualcomm CEO Cristiano Amon is steering Qualcomm beyond smartphones – its traditional stronghold – into AI, automotive, PCs and data centres.

The company recently unveiled its Snapdragon X2 Elite processor, targeting enterprise AI computing, and its Guardian platform for secure device management.

Qualcomm is also preparing a new line of AI data centre chips set to challenge Nvidia in 2026, with Saudi-backed startup Humain as its first customer.

The company could also benefit from easing trade tensions between the US and China, after both nations agreed to halt antitrust probes into Qualcomm.