Qualcomm jumps as optimism on smartphones, AI chips outweigh dismal forecast

Qualcomm shares jumped more than 13% on Thursday, as investors latched on to the chief executive’s optimism about a recovery in its smartphone business and data center opportunities, eclipsing a weak third-quarter forecast.

CEO Cristiano Amon, in an interview with Reuters on Wednesday, said the company was confident that the smartphone market will start to rebound after its fiscal third quarter.

Qualcomm, one of the world’s largest suppliers ‌of smartphone chips, ⁠has increasingly ⁠sought to reduce its dependence on the cyclical handset market by expanding into high-growth segments such as data ​center processors and autonomous vehicle chips.