Chipmaker Qualcomm forecasts upbeat revenue on smartphone strength, AI boost
Qualcomm forecast fourth-quarter revenue above Wall Street estimates on Wednesday, betting on strong demand for high-end Android devices and the need for more chips in smartphones that are getting AI upgrades.
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Shares of the San Diego, California-based chipmaker rose more than 5% in extended trading, adding to year-to-date gains of over 24% as Wall Street invests heavily in the technology that powers generative artificial intelligence.
In contrast, shares of Arm Holdings, lost 5% after the chip firm's cautious forecast fell short of sky-high expectations from investors.
The addition of 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 fourth-quarter revenue range with a midpoint of $9.9 billion, compared with analysts' average estimate of $9.71 billion, according to LSEG data.
Increased demand from China for premium smartphones is driving orders for Qualcomm's chips in the country, CEO Cristiano Amon said in May.
The addition of AI features have also led to smartphone providers using more of Qualcomm's semiconductors in their devices to help support advanced processing requirements.
«We believe Apple and ARM-based PCs are driving Qualcomm's handset outlook. We think the premium tier smartphone market, which
