NEW YORK (
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
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
. Qualcomm's increase in sales will be driven by booming demand for smartphones and tablets.
Earlier this week,
Qualcomm CEO Paul Jacobs
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
, 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
, is expected to
iPhone next year as well as
so-called iPhone 5.
--Written by James Rogers in New York.
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