How Automotive AI Partnerships With Google and BMW Have Changed QUALCOMM’s (QCOM) Investment Story

• Earlier this month, Google Cloud announced an expanded collaboration with QUALCOMM to integrate its Automotive AI Agent, powered by Gemini models, into Snapdragon Digital Chassis solutions, while BMW confirmed plans to deploy QUALCOMM’s AI-enabled Snapdragon Ride Pilot automated driving system in its upcoming iX3 SUV.
• These partnerships highlight QUALCOMM’s growing influence in the automotive AI domain and underscore the increasing importance of advanced, personalized in-car technology solutions for automakers worldwide.
• We'll now examine how these automotive AI wins bolster QUALCOMM's growth prospects and reshape the current investment narrative.

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QUALCOMM Investment Narrative Recap

To be a QUALCOMM shareholder today, you need confidence in the company’s ability to sustain leadership in wireless and AI-enabled technologies, while effectively executing its diversification into automotive and industrial IoT. The appointment of Dr. Jeremy Kolter to the board underscores a deeper commitment to AI safety and technical expertise, but this high-profile addition is unlikely to materially shift the near-term catalyst for QUALCOMM, the expanding commercialization of automotive AI platforms, or offset the persistent risk posed by regulatory scrutiny around its licensing model.

Among the recent announcements, the integration of Google Cloud’s Automotive AI Agent into Snapdragon Digital Chassis stands out. This partnership supports the thesis that automotive and industrial IoT segments can provide fresh growth, acting as a buffer against slower smartphone markets and reaffirming QUALCOMM’s multi-year diversification catalyst.

Yet, investors must also weigh the possibility that, despite new board talent, regulatory risks to the patent licensing business remain and ...

Read the full narrative on QUALCOMM (it's free!)

QUALCOMM's narrative projects $46.9 billion revenue and $12.2 billion earnings by 2028. This requires 2.7% yearly revenue growth and a $0.6 billion earnings increase from $11.6 billion.

Uncover how QUALCOMM's forecasts yield a $177.71 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Thirty-eight Simply Wall St Community members estimate QUALCOMM’s fair value from US$140 to US$300 per share. With automotive AI wins seen as a key growth driver, consider how your own view stacks up before acting.

Explore 38 other fair value estimates on QUALCOMM - why the stock might be worth 13% less than the current price!

Build Your Own QUALCOMM Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your QUALCOMM research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free QUALCOMM research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate QUALCOMM's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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