Qualcomm Value Surpasses Intel’s on Robust Smartphone Demand

QUALCOM gained a bigger market value than Intel Corp. (INTC) for the first time after it forecast results that topped analysts’ predictions, adding to evidence that smartphones are gaining ground at the expense of computers.

Shares of San Diego-based Qualcomm jumped 7.1 percent to $62.24 as of 11:09 a.m. in New York, giving the largest seller of mobile-phone semiconductors a market capitalization of about $106 billion, higher than Intel’s $105 billion.

“Qualcomm has absolutely been one of the prime beneficiaries in smartphones and tablets,” said Mike Burton, an analyst at Brean Capital LLC. “This is a very strong report.”

They reached the milestone after forcasting earning and sales this quarter that showed robust demand for handled device.
Under Chief Executive Officer Paul Jacobs, the company is gaining as consumers in developed nations snap up pricey new phones while those in upgrading the emerging markets to devices that provide Web access. Intel, a laggard in the market for mobile- phone chips, is being hurt by slack personal-computer sales.

“Qualcomm has absolutely been one of the prime beneficiaries in smartphones and tablets,” said Mike Burton, an analyst at Brean Capital LLC. “This is a very strong report.”

The company said in a statement yesterday that this quarter’s earnings will be 90 cents to 98 cents a share on revenue of $5.6 billion to $6.1 billion. Analysts on average had projected net income of 86 cents on sales of $5.33 billion, according to data compiled by Bloomberg.

Qualcomm stock rose as much as 8.1 percent, the biggest intraday increase in a year. It had increased 6.3 percent this year through yesterday, while shares of Santa Clara, California- based Intel had slumped 14 percent.

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