Qualcomm Gives Rosy Forecast, Fueled by Push Into New Markets
- Company says auto industry sales to hit $3.5 billion by 2025
- Majority of chipmaker’s revenue tied to smartphone sales
Qualcomm Inc., the biggest maker of chips that run smartphones, gave an upbeat sales forecast, fueled by growth in new markets. The shares jumped 7.9% to a record high.
Revenue has the potential to top $46 billion by fiscal year 2024, Qualcomm Chief Financial Officer Akash Palkhiwala said at company event Tuesday in New York. Analysts, on average, projected Qualcomm’s sales would reach about $43.8 billion. The chipmaker’s revenue is on course to expand about 16% in its current fiscal year, 2022, before slowing to grow at 7% in the following year, according to estimates compiled by Bloomberg.
Chief Executive Officer Cristiano Amon, who was promoted to the top job at the San Diego-based chipmaker earlier this year, is trying to lower Qualcomm’s dependence on smartphones and jump on higher-growth opportunities in markets such as automotive, wireless home broadband and industrial.