Qualcomm Stock Jumps as AI-Equipped Smartphones Drive Better-Than-Expected Outlook [Video]

Qualcomm (QCOM) shares jumped more than 4% in extended trading Wednesday after the mobile phone chip giant posted strong earnings and a better-than-expected current-quarter outlook amid growing demand for artificial intelligence (AI)-equipped smartphones.

The company projects sales in the June quarter to range between $8.8 billion and $9.6 billion, with the $9.2 billion midpoint of that guidance above the $9.05 billion consensus. It sees earnings per share (EPS) for the period of between $2.15 and $2.35, topping the Wall Street forecast of $2.17 per share.

For the fiscal second quarter ending March 24, the San Diego, California-based company reported adjusted earnings of $2.44 per share, comfortably above estimates modeled by analysts at $2.32 a share. Revenue in the quarter of $9.39 billion improved 1% from the prior year’s corresponding quarter and topped the $9.34 billion Street expectation.

While the company said it expects handset revenues to decline in the current quarter due to …