Qualcomm (QCOM, Financial) revealed its five-year business outlook, projecting an additional $22 billion in annual revenue by 2029 through expansion into new markets. Approximately $4 billion is expected from the PC chip market, following the release of the Snapdragon X processor for Windows devices. This marks a significant milestone for CEO Cristiano Amon, who aims to reduce dependency on smartphones since his tenure began in 2021.
In fiscal 2024, Qualcomm's mobile business accounted for $24.86 billion, nearly 75% of its chip division. The company predicts automotive revenue to grow by approximately 175% to $8 billion, with 80% of orders secured. Amon emphasized the relevance of Qualcomm's technologies across various industries beyond smartphones.
Additional revenue will stem from industrial chips ($4 billion), headsets under the XR category ($2 billion), and other devices like tablets and wireless earphones ($4 billion). Despite a 16% stock increase this year, Qualcomm lags compared to the Nasdaq's 26% rise. The company highlighted potential market opportunities with a total addressable market of $900 billion.
Qualcomm seeks to counterbalance any potential loss of Apple's (AAPL) business by leveraging its technologies, such as modems and processors, in new sectors like automotive, PCs, and XR. CEO Amon views the transition of Apple to proprietary processors as a significant opportunity, particularly as existing OS solutions face skepticism.
Qualcomm forecasts growth in the VR market, serving manufacturers like Meta (META) with chips for products such as the Quest and Ray-Bans. While positioned as an "edge AI" company, its AI tech is applied in industrial, medical, and smart living sectors, contrasting with cloud-based AI, often using NVIDIA (NVDA) chips. Qualcomm is open to exploring data center products in the future.
