Qualcomm anticipates $4 billion in PC chip sales by 2029, as the company gains momentum beyond smartphones.

• At its investor day on Tuesday, Qualcomm stated that it anticipates its internet of things business to increase its sales by more than four times to approximately $22 billion by 2029.
• In 2021, Cristiano Amon became CEO of Qualcomm with a commitment to broaden the company's focus beyond smartphone chips.

By 2029, it anticipates that its expansion into new markets will bring in an additional $22 billion annually.

Qualcomm announced that approximately $4 billion of its revenue will come from PC chips, as it recently launched Snapdragon X for Windows devices.

The handset business of Qualcomm reported $24.86 billion in sales in fiscal 2024, which is about 75% of its entire chip business. This marks an important milestone for Qualcomm CEO Cristiano Amon, who took over the company in 2021 with a promise to get past a reliance on smartphones.

On Tuesday, Qualcomm announced that its automotive revenues would increase by approximately 175% to $8 billion by 2029, with 80% of this growth stemming from already-secured contracts.

Amon stated at the investor event that we have been on a trajectory and have realized that the technologies we have developed over many years can be highly relevant to various industries beyond mobile.

Qualcomm expects to generate $6 billion in revenue from industrial and headset chips, with $2 billion coming from the XR category. The remaining $2 billion is a catch-all for other chip sales, including those for wireless headphones and tablets.

The Nasdaq has outperformed Qualcomm shares, which have risen by 16% this year.

Over the past decade, Qualcomm experienced rapid growth due to its modems and processors being crucial components for high-end smartphones, particularly those running Android. Additionally, Qualcomm sells modems and related parts to Apple for its iPhones.

Apple may stop buying Qualcomm parts by 2027, but Qualcomm's growing businesses will offset any losses.

Qualcomm has been utilizing its handset chip technology, including modems, processors, and AI accelerators, in new markets such as cars, PCs, and virtual reality, as part of its strategy under Amon. During a recent investor event, the company forecasted its total addressable market to be as large as $900 billion.

Amon stated that they implemented a strategy in '21 and are sticking to it.

Intel currently has over 70% of the market share in laptop and desktop chips, with $29 billion in PC chip sales reported in 2023, according to Mercury Research.

"Apple's move in 2020 to switch from Intel to its own processors presented an opportunity for us to take advantage of the changing competitive landscape between Windows and Macs," Amon said. "The ecosystem did not have confidence in the existing players to deliver a solution, so we saw this as a chance to step up and provide a solution."

The growth potential of the VR market over the next five years is indicated by the forecast for XR headsets. Qualcomm provides chips to many of the top headset manufacturers, including Oculus for its Quest and Ray-Ban products.

Qualcomm identifies as an "edge AI" company, in contrast to cloud-based AI that's typically powered by processors. Officials didn't rule out introducing data center products, as stated in an interview with CNBC.

Qualcomm proposed that its mobile chips could run advanced AI currently limited to large server farms, potentially benefiting from the AI boom as technology improves.

"This year, you can run on the device what you ran on the cloud last year," said Durga Malladi, Qualcomm's senior vice president in charge of planning, at the event.

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