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Qualcomm Stock Climbs on Strong Earnings, Guidance

Qualcomm topped analyst expectations and expects fourth-quarter results that are ahead of estimates.

Shares of Qualcomm  (QCOM) - Get QUALCOMM Incorporated Report were rising Wednesday after the company reported third-quarter results topped analyst estimates.

The San Diego-based chip maker reported second-quarter earnings of $1.92 per share on revenue of $7.99 billion. Analysts were expecting earnings of $1.68 per share on revenue of $7.53 billion. 

“In addition to leading the 5G transition, we are on pace to deliver $10 billion of annual revenues across RF front-end, IoT and Automotive as our business continues to diversify,” said CEO Cristiano Amon.

For the fourth quarter, the company expects revenue between $8.4 billion and $9.2 billion with earnings between $2.15 and $2.15 per share. 

Analysts are forecasting revenue of $8.46 billion with earnings of $2.03 per share. 

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Qualcomm shares rose 3.1% to $146.86 per share after hours at last check. 

Chipmakers are having a strong earnings season despite a chip shortage that has stoked investor concerns that the likes of Tesla  (TSLA) - Get Tesla Inc Report and Apple  (AAPL) - Get Apple Inc. (AAPL) Report may be looking at additional production woes due to the ongoing global semiconductor shortage

AMD after the closing bell on Tuesday reported net income of $710 million, or 58 cents a share, compared with $157 million, or 13 cents a share, a year ago. Adjusted earnings came to 63 cents a share. Revenue totaled $3.85 billion, up 99% from a year ago.

While some analysts have suggested a recovery in chip production and supply combined with a post-pandemic return to normal means the best has past for chipmakers, TheStreet’s Jim Cramer told Action Alerts PLUS senior analyst Jeff Marks last week that calls of a peak in the semiconductor sector may be premature.