TXN - Qualcomm: Automotive Segment Driving Market Domination In ADAS

2024-03-26 17:27:20 ET

Summary

• Qualcomm Incorporated's sustainable growth outlook includes anticipated growth in the Handset segment, Automotive segment, and IoT fueled by Wi-Fi advancements and Qualcomm's entry into ARM-based CPUs.
• Qualcomm's Automotive segment has experienced robust growth, with a 30% average growth rate over the past four years and a 24.8% growth rate in 2023.
• Qualcomm has gained market share in the ADAS automotive semiconductor market, outperforming its competitors and closing the gap with market leader Intel Mobileye.

In our previous analysis of QUALCOMM Incorporated ( QCOM ), we delved into its potential for its sustained growth outlook. Firstly, we projected the Handset segment, particularly buoyed by its dominance in the premium smartphone market, to maintain a forward average growth rate of 10.2% and anticipated a sustainable growth trajectory driven by the continued proliferation of 5G technology. Secondly, we foresaw a consistent expansion in the Automotive segment, propelled by the increasing adoption of Advanced Driver Assistance Systems ((ADAS)) and strategic partnerships. Lastly, our outlook included sustained growth in the Internet of Things ("IoT") segment, fueled by advancements in Wi-Fi technology, diverse applications in Extended Reality ((XR)), and Qualcomm's foray into ARM-based CPUs....

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