Qualcomm's Strong Forecast Signals Recovery in Chip Slump

Qualcomm reported better-than-expected fourth-quarter earnings, with adjusted revenue of $8.67 billion and adjusted EPS of $2.02. The company also provided a strong forecast for the current quarter, expecting adjusted earnings of $2.25 to $2.45 per share on sales of $9.1 billion to $9.9 billion. Despite a 24% decline in revenue year-over-year, Qualcomm's automotive business showed growth, increasing 15% to $535 million in sales. The company's "Internet of Things" business declined 31% to $1.38 billion in revenue. Qualcomm aims to position itself as an AI company, highlighting its chips with AI features and its roadmap for generative AI and mobile computing performance.