(Reuters) – Qualcomm Inc on Wednesday provided a revenue forecast for the current quarter that beat Wall Street expectations, citing strong demand for high-end smartphones and banking on more chips that power artificial intelligence (AI) to be used for device updates.
Shares of the San Diego, California-based company were up more than 5 percent in after-hours trading.
While the smartphone industry has seen its lowest levels in years, the addition of AI-related features has led to a rebound in demand.
Qualcomm said it expected third-quarter revenue of around $9.9 billion, compared with analysts’ average estimate of $9.71 billion, according to LSEG data.
It expects to generate adjusted earnings of around $2.55 per share in the current quarter, compared with a consensus of $2.45 per share.
Chief Executive Cristiano Amon said in May that increased demand in China for high-end smartphones was fueling orders for Qualcomm chips in the country.
In the April-June period, Apple and Vivo, two of Qualcomm’s customers, played the leading roles in the Chinese smartphone market, which grew by 6% during the quarter according to data from research firm Counterpoint.
Qualcomm reported adjusted revenue of $9.39 billion in the second quarter, beating the consensus estimate of $9.22 billion.
(Arsheeya Bajwa in Bangalore; by Jean Terzian)
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