(Reuters) -Qualcomm ( QCOM ) on Wednesday forecast sales and profits above analyst expectations as artificial intelligence features helped drive sales of the smartphones, laptops and other devices powered by its chips.

For its current fiscal second quarter, Qualcomm ( QCOM ) forecast sales range with a midpoint of $10.75 billion and adjusted profits of $2.80 per share, both above analyst estimates of sales of $10.34 billion and adjusted profit $2.69 per share, according to data from LSEG.

Qualcomm ( QCOM ) reported sales of $11.67 billion and adjusted profits of $3.41 per share for its fiscal first quarter ended December 29. Both were well above analyst estimates of $10.93 billion for sales and adjusted profits of $2.96 per share, according to data from LSEG.

Qualcomm ( QCOM ), the world's biggest supplier of modem chips that connect smartphones to wireless data networks, said last month it had won a major new deal Samsung Electronics ( SSNLF ) to provide chips for the South Korean firm's flagship mobile phones around the world. San Diego, California-based Qualcomm ( QCOM ) is also working with Microsoft ( MSFT ) and computer manufacturers to offer a range of laptops and PCs based on its chips.

After the results, Qualcomm ( QCOM ) shares hovered up and down within 1% of their closing price.

At the midpoints of the ranges, Qualcomm ( QCOM ) forecast second-quarter revenues of $9.2 billion for its chip business and $1.35 billion for patent licensing. Wall Street had expected $8.90 billion for chips and $1.43 billion for patent licensing, according to LSEG data.

While Qualcomm ( QCOM ) has diversified its offerings into PCs, cars and other markets, the smartphone market remains its stronghold, supplying both Apple ( AAPL ) and Chinese handset makers such as Xiaomi, Oppo and Vivo. The Chinese smartphone market has struggled with weak demand, with the Chinese government stepping into provide subsidies for low- and mid-tier handset sales in the country.

Qualcomm ( QCOM ) said it had fiscal first quarter handset revenue of $7.57 billion, up 13% from the $6.69 billion it reported a year earlier and below the 20% growth the company saw in its chip revenues overall. Analysts expected $7.01 billion, according to data from Visible Alpha.

Qualcomm ( QCOM ) said fiscal first quarter automotive chip revenue was $961 million while sales from "internet of things" chips - into which it also lumps PC chip sales - were $1.55 billion. A year earlier, automotive chip revenue was $598 million and internet of things revenue was $1.1 billion.

Analysts had expected $905 million in automotive revenue and $1.40 billion in IoT revenue, according to data from Visible Alpha.

For the just ended quarter, Qualcomm ( QCOM ) said overall chip revenue was $10.08 billion with licensing revenues at $1.54 billion. Analysts had expected $9.29 billion for chips and $1.54 billion for licensing.