Chip designer Qualcomm announced on Wednesday that it anticipates sales and profits for the current quarter will exceed Wall Street projections as the company seeks to penetrate the personal computer market while competing for a share of the recovering smartphone sector.

Qualcomm forecasts that its sales and adjusted earnings for the fiscal first quarter, which coincides with the holiday shopping season in the U.S. and Europe, will reach a midpoint of $10.90 billion and $2.95 per share. In contrast, Wall Street analysts had estimated figures of $10.59 billion and $2.86 per share, according to data from LSEG.

For the fiscal fourth quarter ending September 29, Qualcomm reported sales and adjusted earnings of $10.24 billion and $2.69 per share, surpassing analyst expectations of $9.91 billion and $2.56 per share.

Based in San Diego, California, Qualcomm is the leading supplier of smartphone chips and is capitalizing on the recovery in the smartphone market as consumers upgrade their devices to leverage artificial intelligence applications, including chatbots and image generators.