Chip maker Qualcomm forecasts upbeat revenue, warns of trade-curb impact
- Qualcomm said early in May that it did not expect any chip revenue from Huawei beyond 2024, but was pursuing licensing negotiations with the Chinese firm
Chip maker Qualcomm forecast fourth-quarter revenue above Wall Street estimates on Wednesday, betting on strong demand for high-end Android devices and the need for more chips in smartphones that are getting AI upgrades.
Shares of San Diego, California-based Qualcomm rose more than 5 per cent in extended trading after it reported results, but pared gains to trade down 1.4 per cent after the firm flagged a revenue hit from the US revoking one of its export licenses for sanctioned Chinese telecoms firm Huawei Technologies.
Tighter export curbs on sharing high-end chip technology with China and mounting Sino-US trade tensions are hindering chip makers from serving one of the largest markets for semiconductors.
“This change will impact our revenues in both the current quarter and the first quarter of fiscal 2025,” CFO Akash Palkhiwala said on a post-earnings call, without detailing the impact.
Qualcomm will continue to negotiate with Huawei, said Alex Rogers, president of the company’s licensing segment.
The company said early in May that it did not expect any chip revenue from Huawei beyond 2024, but was pursuing licensing negotiations with the Chinese firm.