By Stephen Nellis

(Reuters] -Qualcomm Inc forecasts better-than expected profits and revenues for its current quarter based on a high demand for chips in smartphones, cars, and other internet connected devices.

The largest supplier of mobile phone chips, San Diego-based Chips for Mobile has been diversifying its chip portfolio over the past few years. Even though smartphone companies such as Apple Inc. (NASDAQ:) are struggling to find the right supply chains and report inconsistent results, it was optimistic.

After-hours trading results for Qualcomm (NASDAQ:), saw shares rise 3.6%

Qualcomm claimed it anticipates that adjusted earnings per shares will grow between $2.90-$3.10 in its first quarter. That beats expectations of $2.59 according IBES data by Refinitiv.

According to Qualcomm CEO Cristiano Amon, efforts made earlier in the year by Qualcomm to obtain additional chips supplies for next year have proven successful.

Amon explained that this was reflected in Q1 record guidance. It means there is supply.

It also stated that it expected revenue to be at $10.40billion in its fiscal quarter. That includes both the holidays shopping season in America and Europe. Analysts had predicted revenues would reach $9.68billion.

An optimistic forecast might signal an improvement in the chip supply shortage. This has affected production at a few major Qualcomm customers such as Apple Electronics and Samsung Electronics (OTC) Co Ltd.

Qualcomm defied broader supply chain issues, even as one of its biggest customers, Apple, missed Wall Street expectations for iPhone sales and its Chief Executive Tim Cook told Reuters https://www.reuters.com/technology/apple-results-hit-by-supply-chain-woes-cook-says-holiday-quarter-impact-will-be-2021-10-28 were poised to grow worse on a dollar basis during the holiday shopping quarter.

Amon explained to Reuters that the booming results were due in large part to the fact that many Qualcomm customers are grabbing the Android smartphone market share which was left vacant by Huawei Technologies Co Ltd leaving the market.

The company’s identity is not defined by one relationship. Amon explained that Android has an amazing opportunity to grow.

According to the chipmaker, revenue increased 43% to $9.32 Billion for the third quarter ending Sept. 26, as compared to the $8.86 Billion projection.

According to FactSet data, its chip segment saw fourth-quarter revenues of $7.73 Billion, which was higher than analyst expectations of $7.27 Billion.

The reported quarter saw a 44%- 66% increase in sales of all types of chips, including those used for smartphones, radio-frequency system systems, and automobiles.

Qualcomm earned $2.55 an share on an adjusted basis for that period. That is higher than analysts expected of $2.26.