Wed Jan 26, 2011 5:09pm EST

* Company raises forecasts as wireless sales race ahead
* R&D investments translating into design wins
* Stock rises more than 4 pct after hours

SAN FRANCISCO, Jan 26 (Reuters) – Qualcomm Inc (QCOM.O) raised its forecasts for second-quarter and 2011 revenue as sales of its chips for wireless devices accelerate, and its shares rose more than 4 percent.

The company, whose chips have won steady acceptance by mobile device makers from Apple (AAPL.O) to HTC (2498.TW), raised its forecast for fiscal 2011 revenue by at least 5 percent to $13.6 billion to $14.2 billion, surpassing Wall Street’s estimate of $12.8 billion.

The San Diego-based company has said it expected to boost revenue and earnings per share by at least 10 percent a year over the next five years on the back of accelerating demand for chips in smartphones and tablet computers.

“Not only was their quarter much better than expected but guidance for next quarter is even better,” said Charter Equity Research analyst Ed Snyder. “All the suffering of a year ago has paid off in much bigger design wins, and now those are all coming to fruition.”

Qualcomm said revenue rose to $3.35 billion in the December quarter, up 25 percent from the year-ago quarter. That was a bit above analysts’ average estimate of $3.2 billion, according to Thomson Reuters I/B/E/S.

Revenue for the current quarter, the company said, would increase to between $3.45 billion and $3.75 billion, above the $3.1 billion expected by analysts.

Qualcomm posted net income of $1.17 billion for first quarter, ended Dec 26, up 39 percent from the year-ago quarter.

Excluding items, Qualcomm earned 82 cents per share, up 32 percent year over last year.