Qualcomm Smiles as Semiconductor Demand Remains Strong... 30% Increase in 4Q Sales Last Year

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] U.S. semiconductor company Qualcomm recorded better-than-expected results in the fourth quarter of last year as semiconductor demand remained high across all sectors, including smartphones and automobiles. The strong demand for semiconductors is expected to continue driving growth in the first quarter of this year.

According to Bloomberg and other sources on the 2nd (local time), Qualcomm announced its fourth-quarter results for last year and its guidance for the first quarter of this year, reporting fourth-quarter revenue of $10.7 billion (approximately 12.9 trillion KRW) and earnings per share of $3.23, representing increases of 30% and 49% respectively compared to the same period last year. These figures exceeded market expectations of $10.42 billion and $3.01 per share.

Qualcomm also stated that the annual growth rate of its application processor (AP) "Snapdragon," which has become the core product of the Android smartphone sector, was 60%.

Qualcomm expects first-quarter revenue this year to range between $10.2 billion and $11 billion. Cristiano Amon, Qualcomm’s Chief Executive Officer (CEO), said, "Demand remains strong across all technology sectors and continues to outpace supply." CEO Amon prioritizes diversifying the semiconductor markets Qualcomm supplies.

This trend has already been detected across the semiconductor industry. Lisa Su, CEO of AMD, which announced its results earlier, forecasted a 31% increase in server semiconductor sales this year, indicating growth. Intel and Samsung Electronics have also issued positive outlooks for the semiconductor market this year. The strong demand and rising inflation have increased the possibility of semiconductor price hikes.

However, Bloomberg reported that Qualcomm’s stock price fell more than 3% after the earnings announcement, as some sectors such as automotive and Internet of Things (IoT) semiconductors showed forecasts below market expectations.

This content was produced with the assistance of AI translation services.