### Qualcomm's Growth Strategy: Expanding Beyond Mobile Markets

Qualcomm is confidently diversifying into automotive and IoT markets, anticipating $22 billion in non-mobile revenue by 2029.

### Qualcomm's Strategic Vision: Expanding Beyond Mobile to Capture $22 Billion in Non-Handset Revenue by 2029
* 🚀 Qualcomm's total addressable market has grown to **$900 million**, highlighting the company's confidence in **diversifying its revenue streams** beyond mobile technology.
* 📈 Since the last Investor Day in 2021, Qualcomm has been on a trajectory to **expand into automotive and other markets**, recognizing the potential for **higher revenue multiples** as non-mobile revenues increase.
* 💡 The company projects **$22 billion in non-handset revenue** over the next five years, driven by growth across various sectors including **automotive** and the **Internet of Things (IoT)**.
* 🚗 Demand for automotive technology is surging as consumers seek **advanced computational capabilities** in new vehicles, which positions Qualcomm **favorably** in this market.
* 📊 The company anticipates achieving **$4 billion in IoT revenue** by 2029, supported by its innovative Snapdragon processors and a growing number of designs from major manufacturers.
* 🌐 Despite concerns about the semiconductor industry's cyclicality, Qualcomm remains optimistic about annual growth, particularly in the **premium smartphone segment**, which is experiencing **increased demand**.
* 🇨🇳 Qualcomm's business in China continues to thrive, as the company leverages its **advanced technology to maintain a competitive edge** amidst geopolitical challenges.
* 🤝 While exploring potential acquisitions, Qualcomm is focused on **executing its current strategy** and achieving its **ambitious revenue targets** without the need for large acquisitions at this time.

Qualcomm CEO Says Strategy Working, Confident in Targets

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Total addressable market increased to $900 million.

Growth trajectory established since 2021, expanding into new markets.

Current revenue primarily from mobile, but diversification into automotive and PCs planned.

Non-mobile markets expected to drive higher multiples and revenue growth.

Projected $22 billion in non-handset revenue within five years.

Addressing Downside Risks and Market Cyclicality

Acknowledges potential risks from market cyclicality, inventory corrections, and capacity constraints.

Positive outlook on market normalization and continued annual growth.

High expectations for automotive market growth due to increased computational capabilities in new cars.

Internet of Things (IoT) Market Projections

IoT revenue stream includes virtual reality, mixed reality, industrial, networking, and wearables.

$4 billion target for IoT in 2029, considered achievable due to leading technology and platform.

PC market TAM of $35 billion, with a target of $4 billion considered achievable.

Positive traction in ARM-based PCs, exceeding expectations.

Focus on AI capabilities at the edge for industrial IoT applications.

Augmented reality and smart glasses contributing to the $2 billion target.

Android remains the largest global market, with growth focused on the premium tier.

Premium tier smartphone growth is significant, driven by consumer demand for better phones.

Anticipation of AI-driven upgrade cycle as use cases expand.

Positive outlook on China business despite economic concerns, focusing on automotive and industrial sectors.

Confidence in maintaining a strong presence in China due to leading technology.

No major concerns regarding tariffs or procurement issues.

Technological Race and AI Model Development

Discussion of large language models (LLMs) within Snapdragon platform, including Chinese LLMs.

Observation of increasing specialization and regionalization of AI models.

Expectation of diverse regional AI models in the future.

M&A strategy remains opportunistic and targeted to accelerate growth plans.

Focus on executing the $22 billion plan within five years, without the need for large acquisitions.

Confidence in achieving goals despite potential market anxieties.

Addressing Investor Concerns and Future Outlook

Current strategy is working effectively, with consistent growth across markets.

Continued growth expected even with market challenges due to market share gains.

Planning assumes reduced reliance on Apple, projecting a 50/50 split between mobile and growth markets by the end of the decade.

Projected $22 billion in non-mobile revenue by 2029.