Qualcomm rallies on signs smartphone market slump is easing

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After four quarters of decline in its mainstay smartphone business, Qualcomm is starting to see an end to the inventory pile-up in the Android business, with...

- Qualcomm rose nearly 6% on Thursday as its strong first-quarter forecasts signaled that the two-year-long slump in the smartphone market was easing, led by a recovery in China.

Its revenue and profit projections for the last three months of the year were both above Wall Street estimates, with the company predicting a 35% quarter-on-quarter rise in sales to Chinese smartphone customers. CEO Cristiano Amon said Qualcomm expects to retain a "majority share" of the chips in Samsung's forthcoming S24 line of phones and does not expect Huawei's re-entry into the market to affect its relationship with Chinese smartphone companies.

The company's shares are little changed this year. They trade at nearly 12 times their 12-month forward earnings estimates, compared with investor darling Nvidia's 27.2.

 

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