It also faces stiff competition in the automotive market, which it's pinning its future hopes on, from other chipmakers like Nvidia (NASDAQ: NVDA) and Mobileye (NASDAQ: MBLY). Therefore, Qualcomm is heavily dependent on the smartphone market, which has cooled off lately due to severe COVID-19 restrictions in China, sluggish consumer spending amid high inflation, and lackluster sales following last year's 5G upgrade cycle. During the conference call, CFO Akash Palkhiwala warned that "rapid deterioration in demand and easing of supply constraints across the semiconductor industry have resulted in elevated channel inventory."