Qualcomm Inc (NASDAQ:QCOM) stock rose 10.70% (As on May 2, 11:20:50 AM UTC-4, Source: Google Finance) after the company forecast quarterly sales and adjusted profit above Wall Street expectations, driven by selling more and pricier chips into Android smartphones with artificial-intelligence features. The company said its sales to Chinese smartphone makers have grown 40% in the first half of its fiscal year, a sign of recovery in that market. In a challenge to Apple, Qualcomm plans to release a chip designed to power laptops starting this summer, though that small amount of early sales is unlikely to play a major role in the company’s third-quarter forecast. Further, China is a bright spot, as ales to phone makers in that country, the biggest market for the devices, surged 40% in the first half of the fiscal year. In that market, Qualcomm’s Amon said that his local customers, including Xiaomi, Honor, OnePlus Technology, Oppo and Vivo, are fueling demand. They’re not losing smartphone market share to a resurgent Huawei Technology Co. in China. Amon said that Huawei’s reentry into the market has helped stoke interest in the Android operating system, which is often paired with Qualcomm chips.

QCOM in the second quarter of FY 24 has reported the adjusted earnings per share of $2.44, beating the analysts’ estimates for the adjusted earnings per share of $2.32, according to LSEG data. The company had reported the adjusted revenue growth of 1 percent to $9.39 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $9.34 billion. For the just-ended fiscal second quarter, Qualcomm said chip and licensing revenues were $8.03 billion and $1.32 billion, respectively, compared with analyst estimates of $7.95 billion and $1.32 billion, according to LSEG. Within Qualcomm’s chip business, the company said that mobile handsets generated $6.18 billion in sales in the second quarter, compared with estimates of $6.23 billion, according to data from Visible Alpha. Automotive and Internet-of-Things chip revenues in the second quarter were $603 million and $1.24 billion, respectively, compared with analyst estimates of $578.9 million and $1.22 billion.

Qualcomm forecast third-quarter sales and adjusted profit with midpoints of $9.2 billion and $2.25 per share, beating analyst estimates of $9.05 billion and $2.17 per share, according to LSEG data. In Qualcomm’s chip segment, the company forecast fiscal third-quarter sales with a midpoint of $7.8 billion, compared with analyst estimates of $7.74 billion, according to LSEG data.

Qualcomm predicted third-quarter patent-licensing sales with a midpoint of $1.3 billion, compared with estimates of $1.29 billion.