Qualcomm With Bullish Approach Toward AI and Teases Besides Revealing Upcoming Platform

Qualcomm Banks on AI for Phones and Arm PCs

Qualcomm, the well-known chips and telecoms company based in San Diego, has shown positive revenue growth bolstered by the rise in revenue from Chinese handset makers and promises of new $700 Copilot+ PCs to be unveiled next year. The company's bet on AI in phones and Arm PCs seems to be paying off, as reflected in its fiscal Q3 2024 revenues.

Market Reservations Despite Revenue Growth

Despite an increase in Qualcomm's revenue and earnings per share, market watchers report a dip in Qualcomm's shares in the US. This was attributed to concerns over the slower than expected recovery of the smartphone market. Still, the firm's QCT chipset business saw a 12 percent YOY growth, with licensing revenue also coming up by 3 percent.

Paving the Way for AI-Centric Smartphones

CEO Cristiano Amon's remarks during a conference call hinted at the company's future direction. He commented on positive growth in the automotive and IoT sectors, as well as Qualcomm's Snapdragon mobile platforms' demand.

The Role of AI in Expanding Premium Tier for Smartphones

AI's role in expanding the premium tier smartphone market was highlighted by Amon. Even in a flat growth market, the presence of AI has led to faster growth in the premium tier, which now makes up 31% of the market, up from 21%.

Introduction of the Next-Gen Snapdragon 8 Mobile Platform

The CEO announced that Qualcomm's next-generation Snapdragon 8 flagship mobile platform would be unveiled at the forthcoming Snapdragon Summit in October. The platform will be the first to use Qualcomm's custom Oryon CPU and feature unparalleled NPU AI capabilities.