Qualcomm says it expects $4 billion in PC chip sales by 2029, as company gets traction beyond smartphones
Ann Wang | Reuters
Qualcomm said on Tuesday that it expects its push into original markets to generate an extra $22 billion per year by 2029.
Of that quantity, roughly $4 billion will approach from PC chips, Qualcomm said at its investor day on Tuesday. The chipmaker factual launched PC processors earlier this year, when it released Snapdragon X for Windows units.
The most modern forecast marks a essential milestone for Qualcomm CEO Cristiano Amon, who took over the firm in 2021 with a promise to gain past a reliance on smartphones. In fiscal 2024, Qualcomm’s handset industry reported $24.86 billion in gross sales, about 75% of its entire chip industry.
Qualcomm also said on Tuesday that automotive revenues would upward push about 175% by 2029 to $8 billion, of which 80% is tied to contracts which enjoy already been secured.
“Now we were on this trajectory realizing that the applied sciences now we enjoy developed over the decades may merely even be very linked to loads of assorted industries beyond cellular,” Amon said at the investor tournament.
Any other $4 billion in earnings will approach from industrial chips and $2 billion will approach from chips for headsets, a category Qualcomm calls XR. About $4 billion of the forecast is a accumulate-fascinated with other chip gross sales, take care of these for wi-fi headphones and tablets.
Qualcomm shares are up 16% this year, trailing the Nasdaq, which has obtained 26%.
Qualcomm grew over the final decade as its modems and processors grew to change into critical ingredients for excessive-finish smartphones, in particular these operating Google Android. Qualcomm also sells modems and linked ingredients to Apple for its iPhones.
However the firm has warned traders that Apple may pick to stay buying Qualcomm ingredients as rapidly as 2027. Qualcomm said on Tuesday that its rising firms will bigger than offset any losses from Apple.
A Li Auto L9 electric automobile (EV) is viewed displayed at the Qualcomm gross sales position all the best procedure through the first China World Provide Chain Expo (CISCE) in Beijing, China November 28, 2023.
Florence Lo | Reuters
Qualcomm’s strategy underneath Amon has been to expend the know-how its developed for its handset chips, take care of modems, processors, and AI accelerators, in original markets, including vehicles, PCs, and digital actuality. The investor tournament used to be the first time in years that the firm has given a forecast for these original markets. Qualcomm said its total addressable market is as colossal as $900 billion.
“We save a technique in ’21, and we’re now now not changing our strategy,” Amon said.
Computer and desktop chips are currently dominated by Intel, which has over 70% p.c of the market, in line with Mercury Examine. Intel reported $29 billion in PC chip gross sales in its 2023.
“The aggressive landscape modified between the Windows and Macs,” Amon said, relating to Apple’s transfer in 2020 to swap from Intel to its possess processors. “We saw that as a likelihood, in particular as the ecosystem did now now not enjoy self assurance within the present gamers to if truth be told ship a solution.”
The forecast for XR headsets also hints at the boost doable of the VR market over the following 5 years. Qualcomm gives chips to many of the head headset makers, including Meta for its Quest and Ray-Bans merchandise.
In phrases of man-made intelligence, Qualcomm calls itself an “edge AI” firm, in distinction to cloud-essentially based AI that is on the total powered by Nvidia processors. Company officials didn’t rule out introducing recordsdata heart merchandise in an interview with CNBC.
Qualcomm suggested that its cellular chips may be in a space to flee the roughly evolved AI that is limited to colossal server farms as we insist, a signal that that firm will enjoy the benefit of the AI negate down the road as the know-how turns into extra atmosphere friendly.
“What you would flee on the cloud closing year, you would flee on the machine this year,” Durga Malladi, Qualcomm’s senior vp to blame of planning, said at the tournament.
