Qualcomm forecasts upbeat revenue as 5G demand mitigates virus impact

Qualcomm Inc on Wednesday forecast current-quarter revenue largely in line with expectations as it signed more contracts for 5G phones, which use higher-priced chips, at a time when the COVID-19 pandemic has disrupted production channels and led to a fall in demand for smartphones.

The company also beat Wall Street estimates for second-quarter profit and revenue on the back of higher prices for its mobile chips, sending its shares up 5% in trading after the bell.

Qualcomm forecast total revenue of between $4.4 billion and $5.2 billion for its third quarter. Analysts had estimated revenue of $4.89 billion, according to IBES data from Refinitiv.