Qualcomm Inc raised its quarterly profit and revenue targets as it forecast better-than-expected mobile phone chip sales, but said it remains cautious due to the weak economy.

Qualcomm said it now expects revenue of $2.67 billion to $2.77 billion for its fiscal third quarter, ending June 28, up from a previous forecast of $2.4 billion to $2.6 billion.

It raised its outlook for operating income, excluding its investment arm and other special items, to a range of $1.06 billion to $1.11 billion, from a previous target of $800 million to $900 million.

Our increased guidance reflects stronger-than-expected demand for more data-capable chipsets and increased licensing revenues driven in part by advanced 3G network upgrades, Chief Executive Paul Jacobs said in a statement.

While some chipset demand for developing markets has shifted to the fourth fiscal quarter and demand remains generally strong, due to the current economic environment we remain cautious and currently project a modest sequential decrease in chipset shipments, he said.

The company did not give an earnings-per-share forecast due to market volatility and said its guidance does not include provisions for the consequences of any pending legal matters.

Qualcomm shares were down 1 percent at $45.58 in early trading on the Nasdaq stock market.

(Reporting by Sinead Carew; editing by John Wallace)