Qualcomm sees revenue, profits above estimates as supply chain improves

Qualcomm Inc forecast current-quarter sales and adjusted profits above Wall Street estimates, with executives saying they see supply constraints easing as smartphone buyers upgrade to 5G and former Huawei Technologies Co Ltd customers migrate to Qualcomm-chip phones.

Qualcomm shares rose 5.4% to $144 in extended trading.

Qualcomm is the world’s biggest supplier of smartphone chips, providing key components for 5G connectivity. The San Diego, California-based company has resolved protracted legal fights with regulators and regained iPhone maker Apple Inc as a customer.

That has helped its shares rise 83% over the past year, beating the Nasdaq Composite Index’s 64% gain, as investors bet Qualcomm will be a big winner in the global shift toward 5G telecommunications networks.