Qualcomm Aims for $22 Billion in Automotive and IoT Revenue by 2029

Qualcomm aims to reach $22 billion in revenue from automotive and IoT segments by 2029. The company reported a total revenue of $10.4 billion in Q3, with its chipset business showing strong performance. Qualcomm's CEO emphasized the company's focus on solidifying its leadership in the AI smartphone sector through a multi-faceted development strategy. This approach is designed to enhance Qualcomm's competitive edge and drive growth across various technology domains.

Title: Qualcomm's Strategic Shift: Focus on Automotive and IoT to Reduce Reliance on Handset Market

Qualcomm Incorporated (NASDAQ: QCOM) reported a strong performance in its fiscal third quarter, with a 10% year-over-year revenue increase, driven primarily by its chipset business. The company's total revenue for Q3 reached $10.37 billion, slightly surpassing analyst estimates of $10.35 billion [1]. Despite this positive growth, Qualcomm is facing significant challenges, particularly from Apple's decision to pivot to its own in-house modem chips, which could significantly reduce its revenue from Apple in the future.

The iPhone 16e, launched earlier this year, was the first Apple smartphone to house a modem developed in-house, signaling a shift that will see Apple relying less on Qualcomm's modems. This change has led to a 6% drop in Qualcomm's share price, as investors reacted to the potential loss of a significant revenue stream [1]. However, Qualcomm's CEO, Cristiano Amon, remains optimistic about the company's future, emphasizing the expansion of its deal to supply chips for augmented-reality glasses for brands like Meta [1].

In response to these challenges, Qualcomm has been actively diversifying its revenue streams. The company aims to reach $22 billion in revenue from the automotive and IoT segments by 2029. In Q3, Qualcomm's automotive and IoT revenue grew by 21% and 24% year-over-year, respectively, reflecting its strategic focus on these areas [3]. This growth is driven by partnerships and investments in key technologies, such as the acquisition of Alphawave Semi and the collaboration with Aetina and Data Systems to expand its industrial IoT market [3].

Additionally, Qualcomm is making significant strides in the AI smartphone sector. The company's Snapdragon processors are at the forefront of AI capabilities, and its Hexagon NPU processors are designed to enhance AI inferencing. Qualcomm's multi-faceted development strategy is aimed at solidifying its leadership in this critical area, which is essential for the future growth of the technology industry [3].

While Qualcomm faces challenges from Apple's decision to develop its own modems, the company's focus on automotive and IoT markets, along with its leadership in AI smartphones, positions it well for future growth. The company's strategic diversification and investment in key technologies are likely to drive revenue growth and reduce its reliance on the handset market [3].

References:
[1] https://www.mitrade.com/insights/news/live-news/article-3-1001631-20250731
[2] https://www.marketscreener.com/news/qualcomm-ceo-on-growth-opportunities-beyond-apple-ce7c5fd2d98ff522
[3] https://seekingalpha.com/article/4806812-qualcomm-q3-growing-automotive-and-iot-for-business-diversification