Qualcomm has posted strong quarterly earnings and giving a rosy future outlook, explaining how supply shortages are improving and demand for chips remains strong.

Qualcomm generated US$10.7 billion in sales, with $3.4 billion in net income for the December quarter, shooting past Wall Street forecasts.

It also projects current quarter revenue of US$11 billion.

“Demand remains strong across all of our technologies and continues to exceed supply,” Qualcomm Chief Executive Cristiano Amon said on an analysts call. He explains that, although supply issues are getting better, bottlenecks are expected to continue.

Qualcomm estimates more than 750 million 5G handsets will be shipped worldwide throughout 2021. Qualcomm’s sales in that segment leapt 42 per cent in the December quarter compared to a year earlier, as 5G demand continues to rise.