QualcommStock rose by more than 6 percent in extended trading Wednesday, after the company released its financial results. fiscal fourth-quarter earningsThis exceeded analysts’ expectations.

Qualcomm beat Wall Street expectations in spite of a worldwide chip shortage. The reason for this was a 56% rise year-over-year in smartphone chip sales.

Below are the consensus predictions of Refinitiv and Qualcomm.

• EPS2.05.55 adjusted vs. 22.6 expected. This is an increase of 76% over the previous year.
• RevenueAdjusted: $9.3 Billion vs. $8.86 Billion expected. This is up 43% over the previous year.

Qualcomm claimed it would sell between $10 billion-$10.8 billion this quarter. That’s more than what analysts had predicted at $9.68 trillion.

QCT, Qualcomm’s chip business reported $7.7B in revenue. This is a 56% increase year-over-year. This company attributes the increase to strong demand in chips for smartphones.

Qualcomm’s IoT division, which makes low-power chips that connect to other devices via the internet and is part QCT, saw a 66% increase to $1.5 Billion. The demand for RF front-end chip, which connects to 5G networks and is required by the company, increased 45% to $1.24 Billion.

Qualcomm’s handset division was second in terms of product growth in the December quarter, selling $4.69 trillion in sales. Qualcomm anticipates that it will supply chips to as many as 575 million 5G smartphones by 2022. This is a slight downgrade from the previous forecast.

Qualcomm’s automotive division remains the company’s most important product category. While it grew by 44%, to $270 millions, the company did announce several partnerships with automakers like GM.

Qualcomm’s chip business grew during difficult supply times for semiconductors that are used to make computers. This shows that Qualcomm is able to weather the storm. global shortageThis has resulted in companies such as Intel AMDPlease see the following: AppleIts strategy of using multiple chip factories or foundries has led to a better pipeline for chip supply.

QTL, the profitable division of technology licensing, saw a 3% increase in annual sales to $1.55 Billion.

Qualcomm claimed it purchased $1.54 trillion in shares and received $768 million in dividends during quarter.