QCOM Gains Traction in Automotive: Will It Deliver Sustainable Growth?

Core Insights - Qualcomm Incorporated (QCOM) has experienced significant growth in its automotive segment, reporting a 59% year-over-year increase in Q2 2025 [1][8] - The company has established a strong client base, including major automakers and tech firms such as General Motors, BMW, and Google [1] - Strategic acquisitions, including Veoneer and Autotalks, have enhanced Qualcomm's capabilities in driver-assistance technology and vehicle-to-everything (V2X) communication [2][3] Automotive Segment Performance - Qualcomm's automotive segment is projected to generate $3.7 billion in revenue, reflecting a 27.3% year-over-year growth [3] - The company secured 30 new designs in Q2, including five ADAS programs from various automakers, indicating strong demand for its Snapdragon Digital Chassis product portfolio [3][8] Competitive Landscape - Qualcomm faces competition from NVIDIA and Intel in the automotive sector, with NVIDIA focusing on AI-driven connectivity and Intel's Mobileye expanding in autonomous car technology [4][5][6] - Despite the competition, Qualcomm's strategic acquisitions and product offerings are expected to maintain its competitive edge in the automotive market [6][8] Financial Performance and Estimates - Qualcomm's shares have declined 25.5% over the past year, contrasting with the industry's growth of 18.1% [7] - Earnings estimates for 2025 have decreased by 0.17% to $11.8 per share, while estimates for 2026 have decreased by 3.18% to $12.19 [11]