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Qualcomm on Wednesday forecast fiscal third-quarter sales and adjusted profit above Wall Street expectations, driven by a faster-than-expected recovery in smartphone markets thanks to artificial-intelligence features. The company has also branched out into selling chips for cars and devices such as headphones, which in the second quarter helped it beat Wall Street expectations. The company said its sales to Chinese smartphone makers have grown 40% in the first half of its fiscal year, a sign of recovery in that market.

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