Qualcomm Inc on Wednesday forecast second-quarter revenue above Wall Street estimates amid soaring demand for its chips used in devices from phones to internet-run gadgets on the back of an uptick in 5G and cloud adoption.
With 5G services rolling out across the United States and being increasingly adopted worldwide, Qualcomm is set to gain with its flagship chips that enable phones to connect to mobile data networks.
The company continues to benefit from the exit of Huawei Technologies from the smart phone market, which has led to many other Chinese phone brands including Xiaomi, Honor and Oppo to turn to Qualcomm for their chip needs.
“Android is driving the growth. Android is over 60% revenue growth year over year in our results… there is tremendous opportunity with the change in the OEM mix in China, and we’re capitalizing on it,” Qualcomm chief financial officer Akash Palkhiwala told Reuters.
The company forecast current-quarter revenue between $10.2 billion and $11 billion, compared with analysts’ estimates of $9.61 billion, according to IBES data from Refinitiv.
Revenue in the first quarter was $10.7 billion, compared with analysts’ estimates of $10.42 billion, according to Refinitiv IBES data.
Its chip segment had first-quarter revenue of $8.85 billion, above analyst expectations of $8.69 billion, according to data from FactSet.
Net income rose to $3.69 billion, or $3.23 per share, from $2.51 billion, or $2.17 per share, a year earlier.
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