Qualcomm Inc . (NASDAQ:QCOM), a leading semiconductor company, anticipates its fourth-quarter revenue to surpass Wall Street predictions, attributing this to robust demand for high-end Android devices and an increase in chips used in AI-enhanced smartphones. The company's shares saw an uptick of over 5% in post-market trading today.The San Diego-based firm has set its fourth-quarter revenue forecast with a midpoint of $9.9 billion, which is higher than the average analyst estimate of $9.71 billion, according to data from LSEG. This forecast comes as the smartphone market sees a revival in demand, especially for devices equipped with artificial intelligence capabilities, which has led to a higher volume of orders for Qualcomm's chips.Qualcomm's CEO, Cristiano Amon, noted in May that the demand for premium and high-tier smartphones in China has significantly contributed to the company's order book. This demand is further amplified by the need for more advanced semiconductors to support the AI features in these smartphones.For the adjusted earnings of the fourth quarter, Qualcomm projects a midpoint of $2.55 per share, which is ahead of the forecasted $2.45 per share. The company's chip segment also expects to see sales reaching a midpoint of $8.4 billion, topping analyst predictions of $8.33 billion from Visible Alpha.In the backdrop of this positive outlook, two of Qualcomm's major customers, Apple (NASDAQ:AAPL) and Vivo, have maintained leading positions in the Chinese smartphone market, which experienced a 6% growth during the June quarter, as per Counterpoint Research. Analysts are also anticipating Apple to report a revenue increase in its fiscal third-quarter results set to be released on Thursday.Moreover, Qualcomm's forecast for fourth-quarter patent-licensing sales stands at a midpoint of $1.45 billion, which is higher than the Visible Alpha estimates of $1.37 billion. The company's third-quarter adjusted revenue was reported at $9.39 billion, exceeding the estimated $9.22 billion. The positive revenue forecast from Qualcomm reflects a strong market position and a favorable demand environment for its smartphone components, particularly as AI technology becomes more integral to mobile devices.
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