QualcommShares rose by more than 13% on Thursday, before settling at 11% in the middle of the morning just a day after company reports. fiscal fourth-quarter earningsAnalyst expectations were exceeded by this result. Qualcomm beat analyst expectations, according to earnings.

Analysts predicted adjusted earnings per shares of $2.26 with revenue of $8.86billion. Qualcomm posted adjusted earnings of $2.55 per share and revenue $9.3 billion. The chip business saw a 56% increase in revenues to $7.7billion, mainly due to increased demand for smartphones.

CNBC’s Cristiano Amon, CEO of SUPPLY said that “Supply performed exactly as we had planned.”Squawk on the StreetOn Thursday, “Scale helps, we addressed the issue early … we put capacity plans in place and it’s working exactly as we planned.”

Amon explained that company prioritizes supply in areas that yield the highest return. He also said that “handset business” is booming because devices running on faster and more advanced 5G networks are highly sought-after.

CNBC spokeswoman Amon Amon stated that while we did have a strong Q4 quarter, “the truth is we still lack the supply.” We’ll see significant supply improvement at the end the calendar year, as well as in 2022. But there is more demand than supply.

“As you look at Q1 we can grow more, especially with new revenue streams or growth areas beyond handsets,” Amon explained. Amon highlighted virtual reality and other augmented reality devices, noting the fact that Qualcomm is behind Oculus’s headset. FacebookThis was just recently added to the site. changed its name to Meta

Piper Sandler analyst said that Qualcomm is their top large-cap stock because of its strengths in the Android Market. Piper Sandler increased its price target by $175 to $190

Analysts at Piper Sandler wrote that they believe the company has a strong position both in the near- and long-term, with the Android smartphone strength helping to mitigate any Apple move away.

The analysts stated that Qualcomm benefits also from automotive momentum and 5G growth.

This report was contributed by Kif Leswing, CNBC.