Smartphone chip designer Qualcomm announced on Tuesday a new $20 billion stock repurchase initiative, supplementing its existing $2.1 billion share buyback authorization.

The company's stock climbed more than 2% in pre-market trading following the announcement.

Qualcomm also revealed it will increase its quarterly cash dividend by over 3%, raising it from 89 cents to 92 cents per share.

CEO Cristiano Amon stated, "We remain focused on delivering returns to shareholders and advancing our ongoing diversification opportunities."