This article first appeared on GuruFocus.
Qualcomm (NASDAQ:QCOM) shares jumped 8% Thursday after the chipmaker reported second-quarter results that mostly matched expectations and pointed to new demand in data centers.
Non-GAAP earnings per share came in at $2.65, above estimates, while revenue fell 3.6% to $10.59 billion and was roughly in line with forecasts. Qualcomm’s third-quarter outlook fell short of Wall Street’s expectations.
The company said it expects revenue of $9.2 billion to $10 billion and adjusted EPS of $2.10 to $2.30.
Even so, investors focused on Qualcomm’s push into data centers, where it said it has secured a leading hyperscaler customer.
Qualcomm said shipments of its custom chips are set to begin from the December quarter.
Chief Executive Cristiano Amon said the company is seeing multiple hyperscaler and AI-related opportunities as it builds out its data center CPU and AI inference accelerator efforts.
