Qualcomm Shares Climb After Sunny Forecast
The global chip shortage finally appears to be in the rear mirror, and Qualcomm is predicting straight roads ahead.
The world’s largest maker of smartphone semiconductors predicted it will post current quarter revenue of A$14.7-$15.9 billion, smashing Wall Street estimations of A$14 billion.
It predicts profits will be US$2.75-$2.95 a share, compared to an earlier US$2.60 forecast.
This caused shares to surge 7.3 per cent in extended trading, following the announcement. They currently sit at US$135.10.
After years of global upheaval, Qualcomm’s CEO Cristiano Amon has successfully steered the business away from sole reliance on smartphone semiconductors, moving into networking, computers, and automobiles.
“We can no longer be defined just as a communications company serving just one industry,” he told analysts on a call.
But its still the smartphone industry that drives the company. Qualcomm predicted its handset division will grow by 50 per cent during the current financial year, due to Samsung’s newer Galaxy models moving from mainly inhouse chips to Qualcomm’s.
In addition, they have secured larger orders at a number of Chinese smartphone makers.