Shares of Qualcomm Inc. (QCOM - Get Report)   gained 1.3% to close Thursday's trading at $49.52, as investors shrugged off the chipmaker's latest quarterly sales numbers, which included a 20% drop in revenue and guidance of a similar decline in the current fiscal quarter.

Qualcomm said revenue dipped slightly more than expected to $4.8 billion in its fiscal first quarter ended Dec. 30. Earnings in the quarter on an adjusted basis were $1.20 a share, surpassing analysts' estimates of $1.09.

In the year-earlier period, Qualcomm earned 98 cents a share on sales of $6.07 billion.

Qualcomm's latest results were hurt in part by weakness in sales of lower-tier units in China as the economy there slowed, Chief Financial Officer George Davis told analysts on an investor call Wednesday.

The company said it expects adjusted fiscal second-quarter earnings per share of between 65 cents and 75 cents on revenue of between $4.4 billion and $5.2 billion. Analysts had been predicting earnings of 68 cents a share on revenue of $4.8 billion.

Qualcomm shares, which gained 1.6% in regular trading Wednesday, rose another 2.5% in after-hours trading following the results. However, the company's stock is still down by roughly a third from its high point of $76.50 reached last September.

Shares of fellow chipmaker Advanced Micro Devices Inc. (AMD - Get Report) soared nearly 20% on Wednesday after the company posted solid quarterly earnings and said 2019 margins and revenue likely would top forecasts, defying investor gloom for the sector following Nvidia Corp.'s (NVDA - Get Report) sales warning earlier this week.

Watch TheStreet's Behind the Label video series | More videos on our Youtube Channel