Qualcomm forecasts quarterly revenue above estimates on smartphone strength

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 chip firm rose more than 5 per cent 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 Qualcomm. 
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. 
Increased demand from Chinese customers for premium and high-tier smartphones is driving orders for Qualcomm’s chips in the country, CEO Cristiano Amon said in May. 
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. 
During the June quarter, Apple and Vivo, both Qualcomm customers, held top positions in the Chinese smartphone market, which grew 6 per cent during that period, according to data from research firm Counterpoint. 
Analysts expect Apple to return to revenue growth when the iPhone maker reports results for its fiscal third quarter on Thursday.
In Qualcomm’s chip segment, the company forecast fiscal fourth-quarter sales with a midpoint of $8.4 billion, compared with analysts’ estimates of $8.33 billion, according to Visible Alpha.
The company forecast fourth-quarter patent-licensing sales with a midpoint of $1.45 billion, compared with Visible Alpha estimates of $1.37 billion.
Qualcomm reported third-quarter adjusted revenue of $9.39 billion, compared with estimates of $9.22 billion.