Qualcomm's stock surged 5.02% during intraday trading on Tuesday, as investors reacted positively to the company's robust automotive business outlook and a broader semiconductor sector rally.

During an earnings call, Qualcomm's CEO disclosed that the company's automotive business annualized sales are expected to reach approximately $7 billion by the end of the current fiscal year. The third fiscal quarter automotive electronics revenue hit a record $1.59 billion, surging 61% year-over-year and marking 23 consecutive quarters of double-digit growth.

The surge was also supported by a broad rally in the semiconductor sector, with peers like Marvell Technology, Intel, and Micron Technology posting significant gains. The positive momentum helped Qualcomm rebound from a prior session decline.