Qualcomm forecast second-quarter revenue and profit below Wall Street estimates on Thursday as the chipmaker grapples with the combined toll of weak demand for smartphones and a supply glut, a situation that is expected to persist into the first-half of this year. The stock, which initially rose 2.7% in after-hours trading, fell 3%. "The handset industry continues to experience reduced demand, and we are now expecting elevated channel inventory levels to persist at least through the first half of calendar 2023," Cristiano Amon, Qualcomm CEO told investors.
Google is testing new artificial intelligence-powered chat products that are likely to influence a future public product launch. They include a new chatbot and a potential way to integrate it into a search engine. The product tests come after a recent all-hands meeting where employees raised concerns about the company’s competitive edge in AI.
ChatGPT chatbot has caused a huge ripple across the tech industry. In 2022, investors will put at least $1.37 billion into generative AI startups. Microsoft is already launching an OpenAI-powered chat transcription and task-suggestion service for its Teams app.
Apple, Amazon and Alphabet are set to report after the bell Thursday. All three companies' profits are expected to fall from the year-ago quarter. Amazon set to suffer the steepest drop with a decline of 40.6%. Tech giants have been grappling with high inflation and interest rates.