Qualcomm Inc QCOM, the world's leading wireless technology innovator, released its results for the second quarter of fiscal year 2022 ended March 27, 2022 after US stock market trading. Its revenue for the second quarter and its performance outlook for the third quarter both exceeded analysts' expectations. This was also its sixth consecutive quarter of revenue exceeding expectations, mainly due to growth in its four major chip markets.

Gao Tong Mei shares closed up 1.2% on Wednesday, boosted by positive results and surged more than 7% in after-hours trading. Since the beginning of the year, Qualcomm Inc has fallen by about 27%.

Specifically, look at the core financial data:

• In the second quarter, adjusted EPS was $3.21, while analysts expected $2.93, an increase of 69% from a year earlier.

• Adjusted revenue for the second quarter was $11.158 billion, while analysts expected $10.6 billion, up 41 per cent from a year earlier.

• The adjusted EPS for the third quarter is expected to be $2.75-$2.95, while analysts expect $2.60.

• Third-quarter sales are expected to be $10.9 billion, while analysts expect $9.98 billion.

From the point of view of specific business:

• QCT, the chip business, reported sales of $9.55 billion, while analysts expected $8.86 billion, up 52 per cent from a year earlier.

• Revenue from QTL, the technology licensing division, reached $1.58 billion, while analysts expected it to be $1.55 billion, down 2 per cent from a year earlier.

Most of Qualcomm Inc's revenue comes from selling processors and modems for smartphones and technologies that are licensed to connect to cellular networks. Wednesday's strong results came amid broader skepticism about 2022 chip companies, which benefited from strong demand and limited supply during the outbreak.

Led by CEO Cristiano Amon, Qualcomm stressed to investors that it could become a chip supplier in many other broad markets and diversify from its mobile chip business.

The financial report shows that Qualcomm Inc's four major chip markets have all grown.

• Sales of mobile phone chips, its largest market, grew at an annual rate of 56 per cent to $6.33 billion, suggesting that the slowdown in smartphone growth has not affected its core business in an inflationary environment.

• The RF front-end division, which focuses on chips needed for wireless connections, grew 28% to $1.16 billion.

• Sales of automotive chips also rose 41% to $339 million, and although its current sales in the auto market are relatively small, Qualcomm Inc believes that partnerships with automakers and suppliers will further boost growth (excluding revenue from Veoneer, which completed its acquisition this quarter).

• Sales in the Internet of things division, which focuses on low-power and low-cost chips, rose 61% to $1.72 billion.

In addition, Qualcomm Inc said it paid $764 million in cash dividends and bought back $951 million worth of shares in the quarter.

Last October, Qualcomm Inc reached a final agreement with investment firm SSW Partners to buy Veoneer for $37 a share (a total consideration of about $4.5 billion). When the deal is completed, SSW will sell Arriver, Veoneer's autopilot software business, to Qualcomm Inc and find buyers for other Veoneer businesses.

In April this year, Qualcomm Inc announced that he had completed the acquisition of Arriver ™from SSW Partners, enhancing Qualcomm Inc Technology's ability to provide competitive open, fully integrated advanced driving assistance system ADAS solutions to automakers and first-tier suppliers in a large-scale manner.

Upon completion of the acquisition, Qualcomm Inc Technology will integrate Arriver's computer vision, driving strategy and driving assistance assets into its leading Snapdragon Ride ™platform product portfolio, based on its previous partnership with Arriver. The Snapdragon Ride platform is a complete portfolio of high-performance central computing and vision system solutions, using the Snapdragon SoC and accelerator product families to meet the growing demand of the automotive ecosystem for scalable and scalable integrated software SoC in the area of functional security. In addition to being scalable to support a wide range of vehicle types, the modular nature of the Snapdragon Ride platform provides automakers with great flexibility to make full use of the software they have developed.