Qualcomm bullish on automotive, AI on smartphones

CEO Cristiano Amon expects on-device AI to “drive aggressive differentiation” in a number of verticals

Qualcomm noticed its fourth consecutive quarter of file revenues in its automotive enterprise and its executives together with CEO Cristiano Amon have been enthusiastic concerning the alternatives for the chip firm that synthetic intelligence, and significantly generative AI, are bringing as using AI spreads.

The firm noticed revenues of practically $9.4 billion for the quarter, up 11% year-on-year. Web revenue was up 18% from the identical interval in 2023, to $2.1 billion. Qualcomm’s handset-related revenues (its largest phase) grew 12% from the second quarter of 2023, IoT revenues have been down 8% and its automotive-related revenues jumped 87% year-over-year.

Cristiano Amon, Qualcomm president and CEO, stated on the quarterly name with analysts that in automotive, Qualcomm is seeing “indicators of the pipeline translating into income. … Simply throughout the quarter, now we have not solely the launch of 10 new fashions with our know-how, but additionally we even have 10 new design wins, which proceed so as to add to the pipeline,” he defined. “So we’re very enthusiastic about that. We are going to proceed to see as new automobiles get launched with our know-how from the pipeline, the income to develop.”

He additionally stated that gen AI use circumstances are manifesting in automotive, significantly for issues like using giant language fashions (LLMs) in audio. “We’re beginning to see a whole lot of attention-grabbing use case being developed,” Amon stated, including that Qualcomm will be capable to help “an improve of content material within the digital cockpits” through AI.

Qualcomm additionally anticipates extra progress within the use of AI on smartphones and PCs. “We’re happy with the expansion and trajectory of AI use circumstances on smartphones. This continued enlargement of AI options is a precursor to next-generation smartphones which we consider will grow to be AI-centric with pervasive on-device AI working throughout functions within the cloud,” Amon stated, including that “Qualcomm could be very well-positioned to assist drive this transformation throughout the trade within the coming years.”

He stated that AI options are creeping towards important mass. There are actually “tens” of such options, Amon stated. “Once they get to 100, we’re going to begin to see a change, {that a} smartphone with AI characteristic will grow to be an AI smartphone” which “may create an attention-grabbing upside if now we have an AI-driven improve cycle. It’s nonetheless early within the course of, however the use circumstances have gotten extra attention-grabbing.”

General, he continued, AI is “going to be a vital a part of the human-computer interface. And that is going to begin to change a whole lot of the consumer expertise on apps.” He later added: “Finally, a whole lot of the fashions are going to have a number of performance throughout a number of apps.: Amon went on to match the trajectory of AI with the trajectory of the smartphone: “First, there have been like 10 apps, after which [it] grew to become 100 apps and have become 1,000 … apps, grew to become tons of of 1000’s of apps. After which it grew to become very clear what was occurring. I feel we have a look at slightly bit the identical means,” he concluded. “We’re to start with, however we just like the variety of use circumstances rising.”

He additionally stated that Qualcomm expects on-device AI to “drive aggressive differentiation” for the corporate in industrial, networking and XR contexts together with handsets, PCs and automotive. Consequently, Amon stated that Qualcomm is “utterly redesigning our industrial street map” and would unveil that within the coming months.

“We’re super-focused on progress and diversification, and it’s about a lot of bets, not only one guess,” he added.

Qualcomm execs did be aware that its license to export merchandise to Huawei, which was presupposed to expire late this yr, as an alternative was revoked in early Could, which is able to influence its revenues on this quarter and the subsequent.