Qualcomm Inc on Wednesday forecast better-than-expected profits and revenue for its current quarter on soaring demand for chips used in phones, cars and other internet-connected devices.

The San Diego company, still the biggest supplier of chips for mobile phones, has worked to diversify its chip portfolio in recent years. Its optimistic forecast came even as smartphone makers such as Apple Inc have been struggling with supply chain issues and reporting uneven results.

Qualcomm shares rose 3.6% on the results in after-hours trading.

Qualcomm said it expects adjusted earnings per share to grow between $2.90 and $3.10 per share for its first quarter, beating estimates of $2.59 according to IBES data from Refinitiv.

Qualcomm Chief Executive Officer Cristiano Amon told Reuters that efforts the company undertook earlier this year to secure additional chip supplies by year's have been successful and are on track.

"It's reflected in our record Q1 guidance - it means we have supply," Amon said.

The company also said it expects revenue with a midpoint of $10.40 billion for its fiscal first quarter, which includes the holiday shopping season in the United States and Europe, compared with analyst estimates of $9.68 billion.

The upbeat forecast could signal the easing of a global chip shortage that has hit production for a number of major Qualcomm customers, including Apple and Samsung Electronics Co Ltd.

Qualcomm defied broader supply chain issues, even as one of its biggest customers, Apple, missed Wall Street expectations for iPhone sales and its Chief Executive Tim Cook told Reuters https://www.reuters.com/technology/apple-results-hit-by-supply-chain-woes-cook-says-holiday-quarter-impact-will-be-2021-10-28 were poised to grow worse on a dollar basis during the holiday shopping quarter.

Amon told Reuters the booming results came in part because many of Qualcomm's customers have been gobbling up the Android phone market share left open by Huawei Technologies Co Ltd's exit from the smart phone market.

"The company is no longer defined by a single relationship. We have an incredible opportunity for growth in Android," Amon said.

The chipmaker said revenue rose 43% to $9.32 billion for the quarter ended Sept. 26, compared with the projection of $8.86 billion.

Its chip segment had fourth quarter revenues of $7.73 billion, above analyst expectations of $7.27 billion, according to data from FactSet.

Overall, sales of chips that include those for handsets, radio-frequency systems, cars and internet-of-things devices surged between 44% and 66% in the reported quarter.

Qualcomm earned $2.55 per share, on an adjusted basis, for the same period, above analyst expectations of $2.26.

  - Reuters