Qualcomm Projects In-Line Sales Supported by Move to 5G

Qualcomm gave a sales forecast in line with analysts’ estimates, indicating the company is getting a lift from the move to 5G, according to Bloomberg.

Fiscal second-quarter revenue will be $4.4 billion to $5.2 billion, the company said in a statement. Analysts on average estimated $4.83 billion. Qualcomm’s outlook follows more dire forecasts by chipmakers Intel and Nvidia.

“There was strong performance from our chipset business,“ CEO Steve Mollenkopf said in an interview. Still, he said Qualcomm isn’t immune to the economic slowdown affecting its peers. “We are seeing some impact, like the rest of the industry, from market weakness.“

Earlier this month, Qualcomm said it was on target to become the leading supplier of technology for 5G phones, with its chips expected to be part of 30 devices tied to the new, faster networks later in 2019. Qualcomm reported that revenue declined 20 percent to $4.84 billion in the fiscal first quarter. Its chip business had sales of $3.74 billion while the licensing unit generated $1.02 billion.