Of the projected amount, approximately $4 billion is expected to come from PC chips. Qualcomm recently introduced PC processors earlier this year with the release of Snapdragon X for Windows devices.
This forecast marks a significant milestone for Qualcomm CEO Cristiano Amon, who took the helm in 2021 with a commitment to reducing the company's dependence on smartphones. In fiscal 2024, Qualcomm’s handset business accounted for $24.86 billion in sales, about 75 percent of its total chip business.
Qualcomm projected that its automotive revenues would rise by about 175 per cent by 2029, reaching $8 billion, with 80 per cent of this tied to secured contracts.
Amon said: ″We have been on this trajectory realising that the technologies we have developed over the many years can be very relevant to several industries beyond mobile.”
Speaking to the gathered throngs at an investor meeting Amon said an additional $4 billion in revenue is anticipated from industrial chips, with $2 billion expected from chips for headsets, a Qualcomm calls XR. About $4 billion of the forecast is allocated to other chip sales, including those for wireless headphones and tablets.
Qualcomm shares have increased by 16 per cent this year, trailing the Nasdaq, which has gained 26 per cent.
Over the past decade, Qualcomm has grown as its modems and processors became essential components for high-end smartphones, especially those running Google Android. Qualcomm also provides modems and related parts to Apple for its iPhones.
However, the company has warned investors that Apple might stop purchasing Qualcomm parts as early as 2027. Qualcomm assured that its expanding businesses would more than offset any potential losses from Apple.
Qualcomm’s strategy under Amon has been to use the technology developed for its handset chips, such as modems, processors, and AI accelerators, in new markets, including cars, PCs, and virtual reality.
The investor event was the first in years that the company had provided a forecast for these new markets. Qualcomm stated that its total addressable market could be as large as $900 billion.
“We put a strategy in ’21, and we’re not changing our strategy.
The forecast for XR headsets suggests significant growth potential for the VR market over the next five years. Qualcomm supplies chips to many leading headset makers, including Meta, for its Quest and Ray-Bans products.
Regarding artificial intelligence, Qualcomm self-identifies as an “edge AI” company, contrasting with the cloud-based AI typically powered by Nvidia processors. In an interview with CNBC, company officials did not rule out introducing data centre products.
Qualcomm officials suggested that its mobile chips would soon be able to run advanced AI, which currently requires large server farms. This indicates that the company could benefit from the AI boom as the technology becomes more efficient.
Meanwhile, executives said they were "positive" on President-elect Donald Trump's incoming administration and not concerned that proposed US tariffs on China would dampen their business in the country from which they derive nearly half their revenue.
During a question-and-answer session with analyst Alex Rogers, who runs Qualcomm's technology licensing business, said the San Diego, California, company had a "great relationship" with Trump's previous administration, which blocked a hostile takeover bid for Qualcomm from rival Broadcom.
"We expect a good relationship in the future. We're very positive on the recent pick for Commerce Secretary, so we expect to have a good relationship and be engaged as we have been through this past administration," Rogers said, referencing Trump's expected nomination of Howard Lutnick.
