Qualcomm Eases Inventory Fears, Surges
NEW YORK (
) --
Qualcomm
(QCOM)
shares surged Wednesday after the chipmaker eased investor concerns about its chip inventory levels.
The company's shares climbed $1.88, or 4.06%, to $48.26 after Qualcomm presented a diagram at a New York City analyst event that showed an estimate for lower-than-usual inventory, reported
Reuters
.
|
On a conference call for its
, Qualcomm warned that inventory levels would rise, raising the possibility of an overstock of chips -- something that could have an adverse impact on future results.
During the analyst meeting, Qualcomm also predicted that its revenue and earnings per share would grow by at least 10% a year over the next five years, said
Reuters
. Qualcomm's increase in sales will be driven by booming demand for smartphones and tablets.
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Earlier this week,
Qualcomm CEO Paul Jacobs
told
TheStreet
that he expects to see 20% growth in handset shipments next year and also described plans to launch a new dual-processor chip specifically for the mobile device market. This, he explained, will debut in the first half of 2011.
Qualcomm, which blew past Wall Street's fourth-quarter estimates, is also seeing significant demand for its Snapdragon mobile processor, according to the CEO. During his interview with
TheStreet
, Jacobs explained that Qualcomm shipped four times as many Snapdragon chips in the second half of 2010 as it did in the first half of the year.
The silicon specialist, which competes with
Broadcom
undefined
and
Texas Instruments
(TXN)
, is expected to
for a
Verizon
(VZ)
iPhone next year as well as
Apple's
(AAPL)
so-called iPhone 5.
--Written by James Rogers in New York.
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