Qualcomm jumps as it looks beyond smartphones to cash in on the AI boom

June 25, 2026 - 07:10

Qualcomm shares surged on Tuesday after the chipmaker significantly raised its long-term revenue forecast for markets outside of smartphones, signaling a major push into artificial intelligence. The company now expects to generate roughly $22 billion in annual sales from automotive, industrial, and networking chips by fiscal 2029, doubling its previous target.

The revised outlook reflects Qualcomm's aggressive strategy to reduce its dependence on the volatile smartphone market. While the company remains the dominant supplier of modems and processors for high-end Android phones, it has been investing heavily in chips for cars, PCs, and Internet of Things devices. The automotive segment alone is projected to reach $8 billion in revenue by the end of the decade, driven by demand for digital cockpits and advanced driver-assistance systems.

Investors have been watching for signs that Qualcomm can replicate its mobile success in adjacent markets, particularly as the AI boom creates new demand for specialized processors. The company's Snapdragon platform is already being used in a growing number of Windows laptops, and its chips are increasingly found in factory automation and smart city infrastructure.

The announcement came during Qualcomm's investor day, where executives also highlighted progress in licensing deals and cost-cutting measures. Shares rose more than 8% in afternoon trading, adding to a strong year for the stock. Analysts noted that the new target, while ambitious, is supported by visible design wins and long-term contracts with automakers and industrial partners.