Qualcomm Targets $900 Billion Market by 2030: Big Bets on IoT and Automotive

On Tuesday, Qualcomm Inc QCOM hosted its 2024 Investor Day, unveiling ambitious growth targets and a significant opportunity for diversification.

The company emphasized its unique positioning at the edge of connectivity, which will likely expand its total addressable market (TAM) to $900 billion by 2030, driven by a projected 50 billion connected edge device shipments during this period.

At the event, CEO Cristiano Amon highlighted how the company’s technology roadmap and focus on diversification enhance its growth potential.

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As generative AI continues to fuel demand across industries, Qualcomm aims to capitalize on its expanding ecosystem of customers and partners.

Qualcomm outlined its five-year financial goals, projecting strong revenue growth across key segments.

The Automotive and IoT divisions are expected to deliver a combined $22 billion in revenue by fiscal year 2029. Automotive alone is projected to generate $8 billion, while IoT revenues are forecasted to reach $14 billion.

Additional targets include $4 billion in revenue from PC applications, $4 billion from Industrial IoT, and $2 billion from XR. The remaining IoT categories are also anticipated to contribute $4 billion in revenue by fiscal 2029, reflecting the breadth of Qualcomm’s opportunities in connected technologies.  

During the presentation, Qualcomm executives detailed how its technology advances across sectors. Nakul Duggal, Group General Manager of Automotive, Industrial, and Cloud, emphasized the company’s traction in automotive applications.

At the same time, Alex Katouzian, Group General Manager of Mobile, Compute, and XR, discussed the expanding role of extended reality and mobile platforms.

Qualcomm stock surged over 17% year-to-date.

Qualcomm reported fourth-quarter revenue of $10.24 billion, up 19%, topping the Street consensus estimate of $9.91 billion. Qualcomm reported $8.68 billion in revenue for its QCT segment, marking an 18% increase. The segment’s revenue comprised:

• Handsets: $6.1 billion, a 12% year-over-year rise
• Automotive: $899 million, a 68% year-over-year surge
• IoT: $1.68 billion, an 18% year-over-year growth

The QCT automotive division achieved its fifth consecutive quarterly revenue record. Revenue for the QTL segment reached $1.52 billion, reflecting a 21% increase.

Qualcomm expects first-quarter revenue of $10.5 billion—$11.3 billion, compared to the $10.9 billion consensus estimate. The board also approved a new $15 billion stock buyback program.

Cantor Fitzgerald’s C.J. Muse, Rosenblatt Securities’ Kevin Cassidy, Piper Sandler’s Harsh Kumar, and Benchmark’s Cody Acree highlighted Qualcomm’s quarterly beat, which was driven by Chinese premium phone demand and diversification into IoT and Automotive. Muse also flagged challenges ahead with Apple Inc’s AAPL internal modem plans and slowing smartphone markets.

Price Action: QCOM stock traded lower by 0.25% at $164.29 premarket at the last check on Wednesday.

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Photo by Monoar Rahman Rony from Pixabay