Qualcomm Inc. and Arm Holdings Plc, two chip companies heavily dependent on the smartphone market, gained on Thursday after delivering earnings reports that signaled a tentative comeback in demand.

Unlike Qualcomm, which sells chips produced by contract chipmakers, Arm doesn’t actually sell processors itself, but rather licenses its chip designs to semiconductor and smartphone makers. Its most advanced technology, called Armv9, is said to be delivering twice the royalty rates of its predecessor Armv8.

Qualcomm and Arm Holdings release earnings with bearish technical pressures but different growth paths. QCOM faces challenges, while Arm shows resilience.