The company said that smartphone sales had started to pick up, especially in China, and the company scored a new contract with Apple. 

Qualcomm forecast current-quarter revenue of $9.1 billion to $9.9 billion, with a midpoint above analysts' expectations of $9.2 billion according to LSEG data. Qualcomm predicted current-quarter adjusted profits of $2.25 to $2.45 per share, beating expectations of $2.23..

Qualcomm Chief Executive Cristiano Amon told investors smartphone companies had finally worked through most of their existing inventory and were starting to put in fresh orders.

"We're happy that the inventory dynamics that we have seen within the Android business are largely behind us right now," Amon said.

For the just-ended fiscal fourth quarter, Qualcomm reported sales of $8.67 billion and adjusted profits of $2.02 per share, both above analysts' estimates of $8.51 billion and $1.91 per share.

Qualcomm is facing new competition from Huawei Technologies, which has resumed producing its own smartphone chips after relying on the US company for the past several years.

Amon said he does not expect Huawei's re-entry into the market to affect its relationship with Chinese smartphone companies, and Chief Financial Officer Akash Palkhiwala estimated a 35 per cent quarter-over-quarter increase in sales to Chinese smartphone customers.

Analysts also expect major Qualcomm customer Samsung Electronics to resume using some of its own in-house chips after using Qualcomm chips in its most recent devices. Amon said the company expects to retain a "majority share" of the chips in Samsung's forthcoming S24 line of phones.

Edward Jones analyst Logan Purk said Qualcomm was seeing a recovery in Android demand mostly driven by significant growth in demand from Chinese OEMs.

"This recovery would eventually happen but appears to have materialized sooner than expected, driving solid results and improved guidance for the next quarter."

Fourth-quarter sales in Qualcomm's chip unit were $7.4 billion, beating analysts' estimate of $7.26 billion according to FactSet data. In Qualcomm's intellectual property licensing business, sales of $1.26 billion were in line with estimates of $1.25 billion according to FactSet data.

In its chip business, Qualcomm said fourth-quarter revenue from smartphone handsets was $5.46 billion, beating analysts' expectations of $5.34 billion according to FactSet data.

Automotive chip sales were $535 million in the fourth quarter, above estimates of $482 million according to FactSet. Overall, Qualcomm said its automotive chip business was up 24 per cent for fiscal 2023 at $1.9 billion.