Investment Rating - The investment rating for Qualcomm (QCOM.O) is "Hold" [2] Core Views - Qualcomm's financial performance shows a revenue increase of 10% year-over-year for Q3 2025, with net profit rising by 25% [4][12] - The company faces challenges in its core mobile chip business due to market saturation and competition, while automotive and IoT segments are experiencing strong growth [15][20] Financial Performance - Q3 2025 revenue reached $10.365 billion, up from $9.393 billion in the same quarter last year, with a net profit of $2.666 billion compared to $2.129 billion [4][12] - GAAP diluted EPS was $2.43, a 29% increase from $1.88, while Non-GAAP diluted EPS was $2.77, up 19% from $2.33 [4][12] Business Development - QCT (Qualcomm CDMA Technologies) revenue was $8.993 billion, accounting for 86.8% of total revenue, with an 11% increase from $8.069 billion [5][14] - Mobile chip revenue was $6.328 billion, a 7% increase, while automotive chip revenue reached $0.984 billion, growing by 21% [5][15] - IoT revenue was $1.681 billion, showing a 24% increase [5][16] - QTL (Qualcomm Technology Licensing) revenue was $1.318 billion, a 4% increase from $1.273 billion [5][17] Financial Forecast - The projected revenue for 2025 is approximately 428.58 billion RMB, reflecting a 10% growth [6] - The expected PE ratios for 2025-2027 are 14.44, 14.13, and 13.72 respectively [6][8] Market Environment - The smartphone market is showing signs of saturation, with a slight increase in global shipments, but high-end models are performing better than mid-range [18] - The automotive chip market is expanding rapidly, with significant growth expected in the coming years [19] Competitive Strategy - Qualcomm is diversifying its revenue streams by focusing on automotive and IoT markets to reduce reliance on mobile chip sales [20]

Core Insights - Qualcomm is accelerating the deployment of AI capabilities across various terminals, leveraging innovation and market opportunities to deepen industry collaboration and drive technological innovation [1] Group 1: Qualcomm's Commitment to China - 2025 marks an important milestone as Qualcomm celebrates 30 years in China, emphasizing its role as a leading player in global connectivity and computing [2] - Qualcomm provides essential chip solutions such as modems, processors, and RF front-end modules, facilitating innovation in smart terminals, automotive, and IoT sectors [2] - The company highlights the importance of open collaboration in the industry, positioning China as a significant source of global innovation [2] Group 2: AI Deployment and Product Showcase - Qualcomm is partnering with various Chinese ecosystem partners to deploy AI applications on a wide range of devices, including smartphones, automobiles, XR headsets, PCs, and industrial IoT terminals [2] - At the expo, Qualcomm showcased four XR terminal products from companies like Xiaomi and PICO, including the newly launched Xiaomi AI smart glasses and PICO 4 Ultra [2] Group 3: Global Market Adaptation - Qualcomm's support for Chinese clients enables rapid adaptation of products to global markets, with Chinese brands occupying eight of the top ten global smartphone positions [3] Group 4: Industry Collaboration and Innovation - The key to Qualcomm's success in China is "deepening collaboration," which has proven essential for industry upgrades [4] - Qualcomm has displayed a range of Snapdragon-enabled smart terminals at the expo, including flagship smartphones from Chinese brands, showcasing over 100 product designs supporting diverse AI applications [4] - The company has expanded its manufacturing capabilities in Wuxi to meet the growing demand in the 5G sector and established joint innovation centers in collaboration with local governments [4] Group 5: Automotive Sector Transformation - Qualcomm's Snapdragon digital chassis solutions are transforming vehicles from mechanical products to intelligent mobile terminals, supporting over 210 models from various Chinese automotive brands since 2023 [5] - The Li Auto MEGA, featuring the fourth-generation Snapdragon cockpit platform, was highlighted for its advanced graphics processing and local AI capabilities, enhancing user interaction within the vehicle [5]

Group 1 - Qualcomm showcased its cutting-edge technologies in various fields including 5G Advanced, AI, smartphones, PCs, automotive, XR, and IoT at the third China International Supply Chain Promotion Expo [1][3] - The company aims to deepen collaboration with Chinese partners, leveraging 5G-A and AI technologies to promote cross-industry and cross-regional ecosystem synergy [3][11] - Qualcomm's "Wireless Care" initiative provided 5G-A network services at the expo, utilizing 26GHz high-frequency spectrum to support high-bandwidth applications and seamless Wi-Fi coverage [3][6] Group 2 - In the PC sector, ASUS and Lenovo's AI PCs highlighted the capabilities of the Snapdragon X Elite platform, with over 85 AI PC devices launched and expectations to exceed 100 by next year [6] - The XR field featured products from Xiaomi, Thunderbird, Yingmu, and PICO, showcasing immersive experiences powered by Snapdragon platforms [6][7] - In the automotive sector, the Ideal MEGA vehicle, equipped with the fourth-generation Snapdragon cockpit platform, demonstrated advanced graphics processing and AI capabilities for enhanced user interaction [7][9] Group 3 - Qualcomm's new enterprise brand "Qualcomm Leap" was introduced, showcasing applications in robotics, industrial, agricultural, and retail sectors, highlighting the company's strengths in edge AI and low-power computing [9] - The company emphasizes the importance of open collaboration in the global supply chain and aims to continue deepening partnerships to achieve technological innovation and industry application integration [11]

Core Insights - The traditional consumer electronics component suppliers are increasingly entering the automotive industry due to the ongoing wave of new energy [2] - Qualcomm's Snapdragon digital chassis solution is driving the transformation of vehicles from mechanical engineering products to intelligent mobile terminals, focusing on connectivity, computing, and AI [2] - The Snapdragon Ride platform supports various driving assistance and cockpit integration features, which are essential for automotive companies to compete in the future [2] Group 1: Qualcomm's Automotive Solutions - Qualcomm has supported over 210 vehicle models from various Chinese automotive brands in the past two years using the Snapdragon digital chassis [2] - The Snapdragon Ride platform includes specific chips for urban and highway navigation assistance, as well as a unique platform that supports both digital cockpit and ADAS functionalities [2][4] - The Snapdragon Ride Elite version supports over 40 cameras and multimodal sensors for AI-based sensor fusion, enabling precise 360-degree external coverage [4] Group 2: Industry Adoption and Collaboration - More than 20 automotive companies have announced or are developing models with ADAS features based on the Snapdragon Ride platform, including major global and Chinese automakers [5] - The platform's flexible architecture allows automotive manufacturers to run both digital cockpit and driving assistance functions on the same SoC, facilitating integrated electronic and electrical architecture [4] - Generative AI is utilized in the Snapdragon Ride platform to personalize settings based on driver behavior and preferences, enhancing the driving experience [4]

Group 1 - Qualcomm showcased its Snapdragon digital chassis solutions at the Automotive Technology and Cooperation Summit, reinforcing its position as a trusted leader in the Chinese automotive industry [1] - The Snapdragon digital chassis includes a comprehensive set of solutions for driving assistance, digital cockpit, automotive intelligence, and vehicle-to-cloud services, with over 350 million vehicles globally adopting these solutions [1] - Since 2023, the Snapdragon digital chassis has supported over 210 smart models from Chinese automakers [1] Group 2 - The Snapdragon Ride platform balances performance, efficiency, and cost, with over 20 global automakers adopting it for their next-generation models [2] - In the Chinese market, more than 30 automotive brands and tier-one suppliers have integrated the Snapdragon Ride platform for Advanced Driver Assistance Systems (ADAS) [2] - The platform features a world-class safety architecture and has been validated in over 60 countries since 2016, continuously enhancing its capabilities through ongoing R&D [4] Group 3 - The integration of digital cockpit and driving assistance functions is becoming a trend with the Snapdragon Ride Flex SoC, which supports mixed critical workloads on a single hardware platform [4] - Major automotive companies like BAIC Group, Chery, and Desay SV have adopted the Snapdragon Ride Flex SoC to develop or plan mass production models, promoting centralized computing and software-defined vehicle architecture [4] - Qualcomm's collaboration with the Chinese automotive industry is significantly advancing the smart transformation of the sector through scalable technology architecture [6]

Core Insights - Qualcomm emphasizes the importance of "technology inclusiveness" and "ecosystem win-win" in its automotive strategy, focusing on three strategic pillars: full-stack layout for automotive business, balancing innovation with safety, and deepening collaboration in the Chinese market [1][2][5] Full-Stack Layout - Qualcomm has been in the automotive industry for over 20 years, evolving from early solutions to the Snapdragon Digital Chassis, which includes platforms for smart cockpit, advanced driver assistance systems (ADAS), and vehicle connectivity [2][3] - The company aims to adapt its focus dynamically based on industry needs, with smart cockpit and driving assistance becoming new growth engines [3][4] Technology and Safety Balance - AI is reshaping automotive interaction and decision-making, with Qualcomm focusing on terminal-side large models and multi-modal model integration to enhance user experience [5][6] - Safety is a core prerequisite for smart driving technologies, with Qualcomm maintaining a defect rate (DPPM) of just a few parts per million to ensure reliability [5][6] Chinese Market Focus - The Chinese automotive market is seen as a core engine for Qualcomm's global strategy, with a high acceptance of new technologies and rapid regulatory responses [6][7] - Qualcomm has established deep integration with Chinese automotive companies, enabling faster application deployment and innovation [7][9] Competitive Advantage - Qualcomm's competitive edge lies in its commitment to forward-looking technology investments and deep ecosystem collaboration, with 20% of its revenue allocated to R&D [8][9] - The company maintains a flexible cooperation model to meet the diverse needs of both new entrants and traditional automakers in the rapidly evolving market [9]

Core Viewpoint - The article discusses the significant impact of DeepSeek on the AI industry, particularly in the consumer electronics and automotive sectors, highlighting the shift towards edge AI and the emergence of new applications and models [1][5][25]. Group 1: DeepSeek's Influence - DeepSeek has been rapidly integrated by major consumer electronics brands such as Honor, OPPO, and Xiaomi, showcasing its widespread adoption [2][4]. - Over 20 automotive companies, including Geely and BYD, have announced their integration with DeepSeek, indicating a strong trend of AI and automotive convergence [3][4]. - The article emphasizes that AI is entering a new era of reasoning innovation, with DeepSeek acting as a catalyst for this transformation [5][7]. Group 2: AI Model Evolution - High-quality, small-scale AI models are becoming feasible, with DeepSeek-R1 providing innovative solutions to long-standing cost issues in edge AI [12][14]. - The article outlines four key trends in AI model development, including rapid evolution of AI models, shrinking model parameters, and the increasing availability of high-quality models for developers [15][17][20]. - Techniques such as quantization, pruning, and distillation are enabling the transfer of performance from large models to smaller ones, enhancing their applicability [18][20]. Group 3: Qualcomm's Role - Qualcomm is positioned as a leader in the edge AI space, having anticipated the shift of AI processing from cloud to edge, as outlined in their white paper on hybrid AI [28][29]. - The company has developed high-performance, energy-efficient chips that support advanced AI capabilities across various devices, including smartphones and automotive systems [32][33]. - Qualcomm's comprehensive ecosystem strategy facilitates developers in deploying AI models across multiple platforms efficiently [41][42]. Group 4: Future Implications - The transition of large models from cloud to edge presents significant opportunities for widespread application and user engagement [43]. - The article concludes that the ongoing innovations in edge AI are just beginning to emerge, with the potential for transformative impacts across industries [45][47].