Qualcomm Forecasts Strong Revenue Amid Smartphone Demand, Warns of Trade Curb Impact

Chipmaker Qualcomm forecasts upbeat revenue, warns of trade-curb impact

Tighter export curbs on sharing high-end chip technology with China and mounting Sino-U.S. trade tensions are keeping chipmakers from serving one of the largest markets for semiconductors. "This change will impact our revenues in both the current quarter and the first quarter of fiscal 2025," CFO Akash Palkhiwala said on a post-earnings call, without specifying the magnitude of the impact. Qualcomm will continue to negotiate with Huawei, said Alex Rogers, president of the company's licensing segment. The company said early in May that it did not expect any chip revenue from Huawei Technologies beyond 2024, but was pursuing licensing negotiations with the Chinese firm. Shares of Arm Holdings also lost 13% in extended trading on Wednesday after the chip firm's cautious revenue forecast fell short of sky-high expectations from investors. The warning on trade curbs overshadowed Qualcomm's optimistic forecast. 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. 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. For its core segment that sells chips to customers, the company forecast a fiscal fourth-quarter sales range with a midpoint of $8.4 billion, compared with Visible Alpha estimates of $8.33 billion. "We believe Apple and ARM-based PCs are driving Qualcomm's handset outlook. We think the premium tier smartphone market, which Qualcomm has more market share in, is faring better than the mainstream segment," said Summit Insights analyst Kinngai Chan. Analysts expect Apple to return to revenue growth when the iPhone maker reports results for its fiscal third quarter on Thursday. Qualcomm may also benefit significantly from the rebounding personal computer market where its Arm-based processors used in Microsoft's latest AI PCs threaten Intel and AMD's longstanding stronghold over the industry. For its patent-licensing segment, the company forecast fourth-quarter sales range with a midpoint of $1.45 billion, higher than Visible Alpha estimates of $1.37 billion. The biggest smartphone chips maker expects an adjusted fourth-quarter earnings range with a midpoint of $2.55 per share, compared with estimates of $2.45. Within Qualcomm's chip business, the company said that revenue from mobile handsets grew 12% to $5.9 billion in sales in the third quarter. Automotive revenue grew 87% to $811 million and Internet-of-Things chip revenues fell 8% to $1.36 billion. Qualcomm had entered the automotive market as a bid to reduce its dependence on the smartphone market and diversify its business. (Reporting by Arsheeya Bajwa in Bengaluru, additional reporting by Juby Babu in Mexico City; Editing by Devika Syamnath)

Qualcomm forecasts quarterly revenue above estimates on smartphone strength

(Reuters) - 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% 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% 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. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila and Devika Syamnath)

Qualcomm forecasts quarterly revenue above estimates on smartphone strength

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 chipmaker 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. Global smartphone shipments rose 6.5% in the June quarter, according to preliminary data from International Data Corp, as momentum towards a full recovery builds. 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. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila and Devika Syamnath)

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. 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 chipmaker 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. Global smartphone shipments rose 6.5% in the June quarter, according to preliminary data from International Data Corp, as momentum towards a full recovery builds. 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. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila and Devika Syamnath)