Your total addressable market is now up to
$900 million. It is great to have you here.
After that investor meeting, you're looking out to 2030.
What gives you that confidence? Look,
we have been, first of all, great to be

here talking to you.
We have been on this trajectory since 2021 when we had our last Investor Day
and we outlined the plans to grow the company to other markets.
We realized that the technology we produce for mobile could be very
disruptive and we could build actually a

leading position in what we did in
automotive, what we did in PCs, and we thought it would be the right thing to tell
investors as we look in the next five years, how are we going to diversify the
company? When you look at the company right now,
most of our revenue is mobile.

Mobile's a great market, but it doesn't
grow as much until we have an AI upgrade cycle.
However, those other markets that we're going into will drive higher multiples.
So as those revenues from non-mobile become a bigger percentage of Qualcomm,
we have an opportunity to actually see a

multiple expansion.
So we want to outline to investors our trajectory, and what's exciting is really
where we are right now. We're very happy with the results of the
company in the near term. We showed on the last earnings call, we're
growing in all markets, including

handsets, and we put out in five years
we're going to have $22 billion of non-handset revenue.
But barring any cyclicality on the market, we expect to continue to grow
annually into that into those targets. Barring any cyclicality.
Can you just talk through like what are

the downside risks to automotive demands
to people actually upgrading to new and refreshed Android phones which are going
to remain? Yeah, what I mentioned about
cyclicality, I think the semiconductor industry we have seen on the past the
past few years, we had a bunch of

different cycles, different markets,
inventory corrections. We have capacity constraints.
We're not assuming that going forward, but some of that could happen.
But when you look at the normalization of the market and we see right now, if
that continues, we feel very good about

the ability to grow annually.
To your question, cars is one that we're incredibly excited because people
are now buying new cars because of the computational capabilities and those big
screens and the digital capabilities of the car.
And I think that's what actually

creating demand for our technology going
in before we get to because the Internet of Things is really going to be
something that we've been talking about almost for a decade.
The Mobile World Congress, remember, everyone's exuberant Internet of Things,
and then reality never quite gets there.

And that's where previous times you've
made targets and perhaps have had to fall short because the ecosystem doesn't
build. What makes you sure it will get to that
14 billion this time? Look, we're very confident, but I would
like to I would like to break that down

for you.
So first pieces, because actually what I need to tell you is we talk about
Internet of Things, but the Qualcomm, Internet of Things, revenue stream,
there's a bunch of things in there we have because we have virtual reality,
mixed reality devices, we have

industrial, we have networking and
personal devices like wearables and watches.
That's our Internet of Things bucket. So we gave a target of $4 billion in P6.
If you think what we're doing right now, Snapdragon, X-series is the fastest
processor, is faster than Intel, faster

than AMD.
We come in in the industry as a new player with a leading platform, the only
platform that could run Microsoft compiler.
Plus, if you look at this, of the service market, the TAM or the SEM that
were provided in Investor Day of PCs in

2029 is 35 billion.
We say we're going to do four. It's a it's very achievable target,
especially when you think about we have the best platform to market today, but
everyone does indeed love that Silicon and Bloomberg intelligence say you're in
the silicon and the PC is great.

But there's been so much cynicism around
the adoption of ARM-based PCs. What is stopping that?
We actually see we see a little bit different.
We launched this platform in in May. We have 20 designs right now from May to
today.

We increase the design traction by 2.5
times. We have 58 now platforms across Dell,
HP, Lenovo, Samsung, the Acer suits and people are buying them.
And the these sales are exceeding our expectations.
So that's why we feel confident.

And if you think about the target we put
in 4 billion in the 35 billion SAM is not that high.
The other one is industrial and you ask me about IoT.
One thing Caroline did change the IoT IoT industrial is at the edge.
The ability to run AI at the edge.

We can run multi-billion parameter models
into a device at the edge that changes the cost equation for a lot of companies
that actually think that it's going to be cheaper than doing it in the cloud or
that they have specific needs that inflict.

Point is what?
Give us confidence we're going to get to 4 billion and industrial by 2029.
And the other 2 billion we provided was for augmented reality and the Ray-Ban
meta smart glasses. Everybody talks about it, it's probably the
favorite Christmas gift this season.

Let's talk therefore about an inflection
point. When you go back to what had been your
bread and butter, which is smartphones and sales, are people upgrading?
Are they going to upgrade, particularly on the Android devices that you sit
with?

Because Apple is, of course, going to be
pulling back for the next few years. Look, Android is the largest global
market for handsets. And we have been very focused on your
Android. What we've seen in the market is that the
growth.

Very, you know, phones grow with GDP
right. It's so it's flat to single digit growth
because everybody has a phone. However, what we have seen is that the
premium tier, they're growing significantly.
We see a mix change when people buy

their next phone, they want a better
phone, and that that has actually allowed us to be growing in many cases, like
double digit on a market that doesn't grow by expanding content.
So what we expect is that this is the trend as we see people buy a premium
smartphone with more AI.

and eventually as the use cases start to
be as big as apps, we're going to see an AI driven upgrade.
We are sitting with the Qualcomm CEO, Cristiano among five worldwide radio and
TV audiences. The upgrade cycle growth of GDP.
You were saying China's GDP is not looking

so great.
You have exposure to that economy. What does it feel like right now?
Look, our China business is a business. We're very happy with it as far as
geopolitics evolve. Actually, our business with China
expanded, especially because as we

become relevant in automotive and
industrial beyond phones, we have Chinese customers.
I think at the end of the day, regardless of GDP growth, China is a big
market. If you are a semiconductor company, then
you have a leading technology that

cannot be replicated by a domestic
product. You're going to have a big business in
China. And that's why we are fighting to make
things domestically because of the new administration and indeed the current
administration still pushing back on China.
You don't have any pause, any concern

about tariffs ramp up, for example?
Look, you should think about our business.
We are exporting semiconductors when the right direction of trade for the United
States. It's especially when you think about trade
balance. So, so in and if we have a leading
technology we expect that China will be

interested, continue to buy our chips.
So we're not concerned about that. We don't have any procurement issues.
You don't import anything, you're not having to stockpile.
Now, we I think we have been, we were a fabulous company and we have been a big
exporter of chips into China.

You've got an amazing bird's-eye
perspective of the technological race that we like to talk about between us and
China, for example. You've got an array of large language
models within your Snapdragon mobile system and platform.
Some of those are Chinese large language

models.
How do they perform compared to the US ones?
Look, we can talk about this all day, but I'm
going to try to summarize a few things. There's a there's a very large number of
models becoming available and they're

very specialized.
I think we're heading towards AI as being a new computing, and you'll
have models that specialize in voice, major, specializing in imaging like
large visual models, etc.. What we're starting to see is a lot of
those models are becoming regionalized,

especially when you think about text and
converse or conversation as the computer starts to speak the
language of humans. Every region has a unique aspect that is
driving a lot of regional models. We expect the future is going to be like
that.

China is going to have their models.
You know, Arabs are going to have their models, we're going to have our models
and they're going to be models specialized for different things.
And we're just the beginning of this exciting new transition.
You could talk about it all day.

The thing that the markets that media
have wanted you to talk about all day is whether you'll be making any
acquisitions and whether you will potentially be making any acquisitions of
Intel, parts of the businesses you'll CFO outline that, look, you actually
could be giving money back to investors.

Is M&A therefore not on the agenda?
Look, we have always been looking for opportunities.
A lot of the M&A framework with the outline has been opportunistic and or
been very targeted to accelerate our plans.
We had shown that would the M&A that

we've done for out of the M&A that we've
done to enter the PC space. So you're probably going to continue to
see Qualcomm doing that right now. At this point, we have
Not identified any large acquisition that
is necessary for us to execute on this

22 billion.
And we're super focused on executing on the 22 billion in the next five years.
So give us the confidence of the investor base that's currently seeing
perhaps your share price up by 6% a moment.
Give them the confidence that this

transition away from Apple and focusing
in on Android but focusing in on the Internet of Things opportunity that you
articulated, the autos, you're going to get there smoothly and with clarity on
timeframe. Yeah look the way the way I see it and I
think that's probably you know, I can't

really, you know, talk about what's
happening with the stock, but I think there may be some confusion.
Our plan in the Investor Day is to tell investors there are strategies working.
We don't need a new strategy.

It is working.
We had executed on what we said we're going to do in those new markets like
auto, for example. We have been having five consecutive
quarters of record growth and we will grow even when the market doesn't work
because we're gaining share.

We had delivered on our insurance on the
PC and are well-positioned to ramp. And we told investors how this is going
to play out with the other markets. We had said since the beginning that our
planning assumptions assume the Apple is

coming off the model.
We had said our contract implies that we have a 20% share in 2016.
Would that be the case? I don't know.
I think we have had two renewals of Apple, but we have to make a planning
assumption that Apple is coming off the

model.
Even with that, we are well-positioned to continue growing through the period
and get to a point into 2029 that we have 22 billion of revenue non-mobile
and when we get to the end of the decade, we have a potential of 50/50
mobiles, about 50%, 50% of the revenue

from growth markets.
So I don't know what the anxiety is, but I think we feel comfortable about the
plan and we'll continue to execute on that plan.

Qualcomm CEO Says Strategy Working, Confident in Targets

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Qualcomm CEO Says Strategy Working, Confident in Targets

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