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What: Shares of mobile chip giant Qualcomm (NASDAQ:QCOM) trended higher throughout October, finishing off the month with gains of 11%, according to S&P Capital IQ data. Shares have been weak all year long, so a little bit of good news can go a long way. In this case, reports surfaced that Samsung may use Qualcomm chips in its forthcoming Galaxy S7 smartphone.

So what: Qualcomm lost the crucial spot in the Samsung Galaxy S6, which was a major blow to the company this year as one of its highest-volume design wins in a flagship device. The Snapdragon 810 reportedly had heating issues that caused Samsung to use its own Exynos processors.

South Korea's Electronic Times says that Samsung will put the newer Snapdragon 820 chips in the Galaxy S7, which is expected to launch next year. Specifically, the geographical variants destined for the important U.S. and Chinese markets should carry the Snapdragon 820, while Samsung Exynos chips may power other variants.

Now what: Winning back some of the Galaxy S7 spots would be an important win for Qualcomm, especially as the company has had a very tough year due to "changing industry dynamics." While the licensing business remains robust, the chip business is seeing heavy pressure in both revenue and margins.

The gains from October may be short-lived as well. Qualcomm just reported earnings and shares fell 5% in after hours trading after the company said net income fell 44% last quarter, and revenue declined by 18%. The company's guidance also left a little to be desired. In the current quarter, revenue is expected in the range of $5.2 billion to $6 billion, which should translate into $0.80 to $0.90 in earnings per share. The Street is forecasting $5.8 billion in sales and $1.08 in earnings per share.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.