Back to top

Image: Shutterstock

QCOM Gaining Traction in V2X Market: Will it Be a Key Growth Driver?

Read MoreHide Full Article

Key Takeaways

  • Qualcomm has strengthened its V2X presence through the acquisition of Autotalks.
  • C-V2X tech and 5G adoption are fueling Qualcomm's connected car expansion.
  • Autotalks' DSRC and C-V2X expertise enhances Qualcomm's global automotive solutions.

Qualcomm Incorporated (QCOM - Free Report) is gradually gaining traction in the vehicle-to-everything (V2X) communication systems market with the buyout of Autotalks. The V2X system has emerged as one of the key enablers of creating a safer and efficient traffic system. The system facilitates communication between vehicles, pedestrians and connected roadway infrastructure. It creates a robust and real-time information sharing systems that offer alerts related to various road hazards, weather conditions and traffic signals. The system can also enhance advanced driver-assistance systems and automated driving features.

C-V2X (Cellular Vehicle-to-Everything) technology has enhanced ADAS (Advanced Driver Assistance Systems) by enabling vehicles to share real-time data with other vehicles (V2V), infrastructure (V2I) and pedestrians (V2P). Improved connectivity infrastructure with accelerated 5G adoption is a key catalyst for V2X proliferation. Qualcomm is steadily expanding its Snapdragon Digital Chassis product portfolio to capitalize on this emerging trend. It has integrated C-V2X capabilities into broader platforms and solutions, including the Snapdragon Digital Chassis, for a comprehensive connected car experience. The successful integration of Autotalks has further augmented its footprint in this domain. 

Moreover, Autotalks’ V2X solutions are compliant with global communication standards such as DSRC (Dedicated Short-Range Communications) and C-V2X (Cellular Vehicle-to-Everything). With seamless access to Autotalks’ comprehensive V2X expertise along with DSRC and C-V2X technology, Qualcomm has been able to offer an extensive suite of automotive-qualified global V2X solutions for installation in vehicles, as well as 2-wheelers and roadside infrastructure. The company’s V2X chipsets offer production-ready standalone solutions that are purpose-built for global applications, resulting in direct communication becoming more pervasive.

Other Tech Firms Focusing on ADAS

NVIDIA Corporation (NVDA - Free Report) offers a scalable AI computing platform tailored for ADAS and autonomous vehicles with NVIDIA Drive. It leverages AI-powered perception using deep neural networks for object detection, lane recognition and path planning, along with high-performance GPUs and software stacks for localization and control. The NVIDIA DRIVE Thor platform has combined ADAS, cockpit and autonomous driving capabilities into a single SoC. It is working with more than 320 automakers, tier-one suppliers, automotive research institutions, HD mapping companies and start-ups to develop and deploy AI systems for self-driving vehicles. NVIDIA’s focus on incorporating AI into the cockpit for infotainment systems is allowing it to grow its autonomous driving revenues.

Intel Corporation (INTC - Free Report) has gained a foothold in the ADAS market with the buyout of Mobileye. The acquisition has enabled the company to rapidly penetrate the autonomous car technology market, currently dominated by the likes of NVIDIA and Qualcomm. With technologies related to cameras, in-car networking, sensor chips, roadway mapping, cloud software, machine learning and data management, Intel envisions Mobileye as a high-growth revenue churner. Mobileye is shifting from low-cost, vision-only systems to premium ADAS software and SuperVision packages. Intel’s EyeQ6 and EyeQ Ultra are the next-gen chips targeting high compute and full autonomous capabilities.

QCOM’s Price Performance, Valuation and Estimates

Qualcomm shares have declined 6.7% over the past year against the industry’s growth of 38.7%.

Zacks Investment Research
Image Source: Zacks Investment Research

Going by the price/earnings ratio, the company's shares currently trade at 13.31 forward earnings, lower than 33.35 for the industry. 

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings estimates for 2025 have increased 0.9% to $11.85 per share over the past 60 days, while the same for 2026 have moved up 0.4% to $11.87.

Zacks Investment Research
Image Source: Zacks Investment Research

Qualcomm stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Intel Corporation (INTC) - free report >>

QUALCOMM Incorporated (QCOM) - free report >>

NVIDIA Corporation (NVDA) - free report >>

Published in