Qualcomm forecasts quarterly revenue above estimates on smartphone strength
2024.07.31 16:20
(Reuters) -Qualcomm forecast fourth-quarter revenue above Wall Street estimates on Wednesday, helped by strong demand for high-end Android devices, and betting that more chips will be used in smartphones that are getting AI upgrades.
Shares of the San Diego, California-based company rose more than 7% in extended trading.
The addition of artificial intelligence (AI) capabilities to smartphones has driven a resurgence in end-market demand after the industry slumped to its lowest level in years, lifting orders for chipmaker Qualcomm (NASDAQ:).
The company forecast a revenue range with a midpoint of $9.9 billion for the fourth quarter, compared with analysts’ average estimate of $9.71 billion, according to LSEG data.
Global smartphone shipments rose 6.5% in the June quarter, according to preliminary data from International Data Corp, as momentum towards a full recovery builds.
Added AI features have also led to smartphone providers using more of Qualcomm’s semiconductors in their devices to help support the processing requirements of advanced functions.
The biggest smartphone chips maker forecast an adjusted fourth-quarter earnings range with a midpoint of $2.55 per share, compared with estimates of $2.45.
