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Qualcomm is working with OKSI to run its OMNISCIENCE software on Qualcomm hardware. This software uses computer vision, which is the ability for computers to understand and process visual information from the world, to help unmanned platforms navigate and identify objects without human input. While this is a niche government-focused project, it shows how the company is finding new uses for its low-power AI chips beyond smartphones. It fits into the broader goal of moving into intelligent machines and autonomous systems where power efficiency is a major requirement.
Source: Business Wire
Qualcomm and Huawei have signed a new multi-year deal that allows the Chinese tech giant to use Qualcomm’s patented technologies in its products. The agreement covers a wide range of essential building blocks for modern electronics, including 5G networking, AI, and general computing.
This is a win for Qualcomm’s licensing business, which acts like a high-margin toll booth for the wireless industry. While Qualcomm makes most of its money selling physical chips, its licensing arm generates a large portion of its actual profit. Securing a long-term deal with a major player like Huawei helps protect that profit stream and reduces the risk of expensive legal fights over patent royalties.
Source: Reuters
Qualcomm released its newest flagship smartphone processor, the Snapdragon 8 Elite Gen 6, which is designed to handle more complex AI tasks directly on the device. These chips are the main source of profit for the company, and a new launch usually signals a coming wave of high-end phone releases.
However, the launch comes at a difficult time for phone manufacturers. The cost of memory chips has risen sharply, which leaves phone makers with less money to spend on other parts or forces them to raise prices for customers. If these higher costs cause people to wait longer before buying a new phone, it could slow down the sales growth Qualcomm expects from this new generation of chips.
Source: CNBC
Qualcomm announced a partnership with Liquid AI to bring a new layer of intelligence to devices using Snapdragon processors. This software uses the chip's built-in AI engine to learn from a user's signals and habits, creating a persistent understanding of their context that AI agents can use to be more helpful.
This matters because it helps Qualcomm move beyond just providing the raw power for AI. By making its chips the best place to run personalized AI that stays private on the device, the company makes its hardware more essential to phone and PC makers who are racing to add these features.
Source: Business Wire
Qualcomm and Apple have extended their agreement for the chips and patents that connect iPhones to cellular networks. This deal is a major win because Apple is one of Qualcomm's largest customers and has been working for years to build its own modem chips to replace them.
This extension provides a steady stream of high-margin licensing fees, which are the payments other companies make to use Qualcomm's massive library of wireless patents. For a long-term owner, this removes a major risk by ensuring that Qualcomm's most profitable business line remains intact while it works to expand into cars and PCs.
Source: Reuters
Management has a long history of setting reachable targets and clearing them. A rare recent miss suggests that even these conservative forecasts are struggling to keep up with a cooling smartphone market.
| Expectation | |
|---|---|
| EPS | $2.19 |
| Revenue | $10.15B |