Qualcomm results, expected top expectations as AI runs the sale of smartphone

On By Littum

By Stephen Nellis and Arsheya Bajwa

(Reuters) -qualcomm on Wednesday expected sales and profits over analysts’ expectations as artificial intelligence features of running the sales of smartphones, laptops and other devices driven by its chips.

For its current fiscal second quarter, the Qualcomm Sales Group expected at a centerpiece of $ 10.75 billion and adjusted profit of $ 2.80 per year. Share, both over analyst estimates of sales of $ 10.34 billion and adjusted the profit $ 2.69 per year. Share, according to data from LSEG.

Qualcomm reported sales of $ 11.67 billion and adjusted $ 3.41 profit.

Qualcomm, the world’s largest supplier of modemchips connecting smartphones to wireless data networks, said last month that it had won a large new deal Samsung Electronics to deliver chips to the South Korean company’s flagship mobile phones worldwide. San Diego, California-based Qualcomm also works with Microsoft and computer manufacturers to offer a variety of laptops and PCs based on its chips.

After the results, Qualcomm shares weakened up and down within 1% of their closure price.

At the midpoints in the intervals, the Qualcomm revenue in the second quarter expected $ 9.2 billion for its chip business and $ 1.35 billion for patent licenses. Wall Street had expected $ 8.90 billion for chips and $ 1.43 billion for patent licensing, according to LSEG data.

While Qualcomm has diversified its offers to PCs, cars and other markets, the smartphone market remains its fortress, providing both Apple and Chinese handset manufacturers such as Xiaomi, Oppo and Vivo. The Chinese market for smartphone has struggled with weak demand, with the Chinese government entering into giving subsidies to low and mid-level handsets in the country.

Qualcomm said it had fiscal handset on the first quarter of $ 7.57 billion, a 13% increase from the $ 6.69 billion, it reported a year earlier and under the 20% growth that the company saw in its chip fees in general . Analysts expected $ 7.01 billion according to data from visible alpha.

Qualcomm said fiscal first -quarter car refund income was $ 961 million, while sales from “Internet of Things” chips – where it also clumps PC -CHIP sales – was $ 1.55 billion. A year earlier, Automotive Chip revenue was $ 598 million and the Internet of Things revenue was $ 1.1 billion.

Analysts had expected $ 905 million in car revenue and $ 1.40 billion in IoT revenue, according to data from visible alpha.