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Chip designer Qualcomm on Wednesday forecast sales and profit in the current quarter would exceed Wall Street estimates as the company benefits from a wave of launches of flagship Chinese smartphones. US Election 2024 US Election Result Live Updates Swing state results deciding who'll be new POTUS Trump vs Harris: Who’s winning which state? Full list The company's shares rose 5.5% in extended trading.
They had surged 12% right after it reported results after the company also flagged a new $15 billion stock buyback . The San Diego, California-based company is the biggest supplier of smartphone chips and is benefiting from a recovery in smartphone markets as consumers upgrade devices for artificial intelligence applications such as chatbots and image generators. Qualcomm's derived 46% of its revenue in its most recent fiscal year from customers with headquarters in China.
The company shot down a question on a post-earnings call on whether the surge in China sales were prompted by concerns over possible tariffs that could be put in place by Donald Trump , who was re-elected as US president on Tuesday. Data Science MySQL for Beginners: Learn Data Science and Analytics Skills By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance AI and Generative AI for Finance By - Hariom Tatsat, Vice President- Quantitative Analytics at Barclays View Program Web Development Mastering Full Stack Development: From Frontend to Backend Excellence By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Advanced C++ Mastery: OOPs and Template Techniques By - Metla Sudha Sekhar, IT Specialist and Developer View Program Strategy ESG and Business Sustainability Strategy By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader View Program Web Development C++ Fundamentals for Absolute Beginners By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Digital Marketing Masterclass by Pam Moore By - Pam Moore, Digital Transformation and Social Media Expert View Program Web Development A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Java 21 Essentials for Beginners: Build Strong Programming Foundations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Master RESTful APIs with Python and Django REST Framework: Web API Development By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, IT Specialist and Developer View Program Office Productivity Mastering Google Sheets: Unleash the Power of Excel and Advance Analysis By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Advanced Java Mastery: Object-Oriented Programming Techniques By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Intermediate Java Mastery: Method, Collections, and Beyond By - Metla Sudha Sekhar, IT Specialist and Developer View Program Qualcomm executives said they did not believe the prospect of tariffs on Chinese goods played a role in rising sales.
Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Trump has floated second-term plans for blanket tariffs of 10% to 20% on virtually all imports as well as tariffs of 60% or more on goods from China, in a bid to boost US manufacturing. "Trump's policies do pose a risk to the broader semiconductor industry, but it remains to be seen if he allows a China takeover of Taiwan and if aggressive tariffs are implemented," said Angelo Zino, vice president and senior equity analyst at CFRA Research. Qualcomm said it expects sales and adjusted profits for its fiscal first quarter - which will cover the holiday shopping season in US and European markets - with a midpoint of $10.
90 billion and $2.95 per share. Wall Street expected $10.
59 billion and $2.86 per share, according to data from LSEG. For the fiscal fourth quarter ended Sept.
29, Qualcomm said sales and adjusted profits were $10.24 billion and $2.69 per share, beating analyst expectations of $9.
91 billion and $2.56 per share. While Qualcomm's current outlook topped Wall Street expectations, investors are still trying to gauge how quickly its revenue stream from Apple will fade.
Apple is working on its own modem chips, and Qualcomm has warned investors that the iPhone maker will stop using its chips at some point. While Qualcomm has a deal to keep selling chips to Apple until at least 2026, Wall Street is watching to see whether Qualcomm's efforts to break into laptops and artificial intelligence in data centers will ramp up quickly enough to offset declines in Apple revenue. But launches of new flagship phones from Chinese Android brands such as Xiaomi, Oppo and Vivo helped lift Qualcomm's forecast, said Kevin Cassidy, managing director at Rosenblatt Securities.
Qualcomm on Wednesday also said it had signed a new licensing agreement with Shenzhen Transsion Holdings Co Ltd , a Chinese firm that makes phones for developing markets. Qualcomm is in a protracted legal dispute with Arm, whose technology Qualcomm uses in almost all its flagship products. Arm last month threatened to cancel a key license with Qualcomm, and the trial in a case brought by Arm in a license dispute is set to start in December.
In Qualcomm's chip segment, the company forecast fiscal first-quarter sales with a midpoint of $9.3 billion, compared with analyst estimates of $9.02 billion, according to Visible Alpha data.
Qualcomm predicted first-quarter sales with a midpoint of $1.55 billion in its patent-licensing business, compared with estimates of $1.51 billion.
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