Qorvo beats first quarter revenue estimates on upbeat chip demand

(Reuters) - Chipmaker Qorvo beat Wall Street expectations for first-quarter revenue on Tuesday, as it benefited from a rise in orders due to a recovery in the smartphone market.

Qorvo's results indicate that the Apple supplier has been received a boost in chip orders thanks to increased smartphone demand, driven by the integration of new artificial intelligence features.

Global smartphone shipments rose 6.5% in the second quarter, led by Samsung Electronics and Apple, according to data from IDC.

Qorvo faces stiff competition from larger chip suppliers like Qualcomm and Broadcom, which have been benefiting from a rebound in the Chinese smartphone market.

However, the company forecast second-quarter revenue in line with market estimates, suggesting that a complete recovery in the smartphone market is still further down the road.

Shares of the Greensboro, North Carolina-based company rose 1.3% in extended trading.

Revenue for the first quarter came in at $886.7 million, beating estimates of $851.9 million.

On an adjusted basis, the company earned 87 cents per share, compared with estimates of 71 cents.

Qorvo forecast second-quarter revenue of $1.03 billion, plus or minus $25 million, in-line with the average analysts' estimate, according to LSEG data.

The company expects adjusted earnings per share of $1.75 and $1.95, compared with estimates of $1.83 per share, for the second quarter.

(Reporting by Zaheer Kachwala in Bengaluru: Editing by Tasim Zahid)