Chipmaker Qualcomm (QCOM) on Tuesday outlined plans to diversify its enterprise from smartphones as main buyer Apple (AAPL) transitions to its personal wi-fi chips. Qualcomm inventory rose on the information.


At an investor occasion in New York Metropolis, Chief Government Cristiano Amon mentioned the corporate’s whole addressable market will improve from $100 billion at this time to $700 billion within the subsequent decade. The expansion comes from Qualcomm increasing into chips for vehicles and Web of Issues gadgets for client and industrial purposes.

“We’ll all the time be the corporate defining the tempo of innovation in cell,” Amon mentioned. “However we’re not outlined by a single finish market and a single buyer relationship.”

Within the smartphone house, Qualcomm now could be targeted on supplying modems and different chips for high-end Android handsets from Samsung and Chinese language distributors.

Qualcomm Inventory Extends Breakout

In the meantime, the corporate is diversifying its enterprise into markets resembling automotive, cell computer systems and wearables, Amon mentioned. It’s making central processing models, graphics processing models and synthetic intelligence chips for gadgets on the sting of networks.

“We at the moment are diversified throughout many giant addressable markets,” he mentioned.

In afternoon buying and selling on the inventory market at this time, Qualcomm inventory superior 6.5{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}, close to 179.40. In intraday buying and selling, it notched an all-time excessive of 180.50.

On Nov. 5, Qualcomm inventory broke out of a 40-week consolidation sample at a purchase level of 168.04, in accordance with IBD MarketSmith charts. The breakout occurred two days after Qualcomm reported fiscal fourth-quarter outcomes. The 5{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} purchase zone extends to 176.44, based mostly on IBD buying and selling tips.

Automotive Market Development

Within the automotive market, Qualcomm is working with 25 carmakers. On Tuesday, BMW Group (BMWYY) chosen Qualcomm to offer know-how for its superior driver-assistance methods and automatic driving platform.

Qualcomm will develop its attain within the automotive market with the deliberate buy of Veoneer (VNE). On Oct. 4, Qualcomm and funding agency SSW Companions introduced a deal to purchase Veoneer for $4.5 billion. After the deal closes, Qualcomm will take over Veoneer’s Arriver enterprise and SSW will get the remainder of the automotive security firm. Arriver makes pc imaginative and prescient, drive coverage and driver help methods.

The quantity of pc chips in vehicles is exploding, Amon mentioned. Along with chips for superior driver-assistance methods and autonomous driving, Qualcomm is making chips for digital cockpits and wi-fi connectivity, he mentioned.

Qualcomm ‘Will Allow The Metaverse’

In client gadgets, Qualcomm hopes to realize an even bigger share of chips for pocket book computer systems as these gadgets shift to Arm-based processors.

Plus, Qualcomm sees an enormous alternative in offering chips to energy digital actuality and augmented actuality headsets, Amon mentioned.

“Combined actuality, XR (prolonged actuality), digital actuality and augmented actuality is the following computing platform,” he mentioned. “We are going to allow the metaverse.”

Qualcomm inventory ranks No. 15 out of 32 shares in IBD’s fabless semiconductor business group, in accordance with IBD Inventory Checkup. It has an IBD Composite Ranking of 96 out of 99.

Comply with Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on client know-how, software program and semiconductor shares.


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Qualcomm Inventory: Chipmaker Charts Path From Smartphones, Apple