NEW YORK ( TheStreet) -- 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 recent fourth-quarter results, 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. 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 ( BRCM) and Texas Instruments ( TXN), is expected to provide chip technology for a Verizon ( VZ) iPhone next year as well as Apple's ( AAPL) so-called iPhone 5. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com