Qualcomm’s forecast beats estimates as AI drives chip sales in China

Qualcomm on Wednesday forecast quarterly sales and adjusted profit above Wall Street expectations, driven by selling more and pricier chips into Android smartphones with artificial-intelligence features.

After a smartphone slump last year, Qualcomm said that China’s Android market – which has become critical to the company – has started to pick up, with consumers there shifting toward purchasing higher-priced devices that can accommodate AI chatbots.

Qualcomm shares were up 4 per cent in after-hours trading. The company said its sales to Chinese smartphone makers have grown 40 per cent in the first half of its fiscal year, a sign of recovery in that market.