Qualcomm shares jump as optimism on smartphones, AI chips outweigh dismal forecast
Qualcomm's shares rose 10.3% before the market open despite a weak third-quarter forecast, as investors focused on CEO Cristiano Amon's optimism about a smartphone market recovery and growth in data center chips. The company is diversifying beyond smartphones into areas like data center processors and automotive chips to reduce reliance on the cyclical handset market. Some analysts remain cautious, citing ongoing memory chip shortages and pricing pressures that could continue to affect the industry.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountQualcomm QCOM-Q shares jumped 10.3 per cent before the bell on Thursday, as investors latched on to the chief executive’s optimism about a recovery in its smartphone business and data centre opportunities, eclipsing a weak third-quarter forecast.CEO Cristiano Amon, in an interview with Reuters on Wednesday, said the company was confident that the smartphone market will start to rebound after its fiscal third quarter.Qualcomm, one of the world’s largest suppliers of smartphone chips, has increasingly sought to reduce its dependence on the cyclical handset market by expanding into high-growth segments such as data centre processors and autonomous vehicle chips.The diversification strategy follows heightened…
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