Qualcomm Inc on Wednesday forecast fourth-quarter revenue largely above Wall Street expectations, powered by strong sales of its chips used in more lucrative 5G devices despite a weak overall smartphone market, Trend reports citing Reuters.
Shares of the company were up 9% in extended trading.
The company also said it resolved a licensing dispute with Huawei Technologies and that while Huawei is still barred from buying Qualcomm’s chips, it has now resumed paying licensing fees for wireless technology.
After resolving a bruising legal battle with iPhone maker Apple Inc last year, Qualcomm entered 2020 predicting revenue growth from 5G devices, which fetch higher chip revenue per phone for the company.
While the company has long supplied processors and modems to help phones connect to wireless data networks, it has pushed into also selling radiofrequency chips to help phone makers handle the more complex signals involved in 5G networks.
Qualcomm, the world’s biggest supplier of mobile phone chips, said it expects current-quarter adjusted revenue of between $5.5 billion and $6.3 billion, compared with analysts’ estimates of $5.78 billion, according to IBES data from Refinitiv.