Qualcomm Rises Some 10% As It Expects Smartphone-Market Rebound

Qualcomm Inc (QCOM.CA) rose some 10% after hours Wednesday after the chip giant released quarterly results.

QCOM gained 9.3% to $170.51 as of about 4:45p.m. New York time after the company forecast quarterly adjusted profit below Wall Street expectations.

The company is bracing for a hit to demand stemming from a shortage of memory chips used in consumer electronics.

Meanwhile, Qualcomm reported fiscal second-quarter revenue of $10.6 billion, in line with expectations.

It also forecast fiscal third-quarter adjusted profit of between $2.10 and $2.30 per share, compared with analyst estimates of $2.45 per share.

QCOM additionally forecast fiscal third-quarter chip revenue of between $7.9 billion and $8.5 billion, below estimates of $8.93 billion.

But Qualcomm CEO Cristiano Amon said the smartphone market should begin to rebound after the company's fiscal third quarter.