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QCOM Expands Automotive Portfolio: Will it Deliver Sustainable Growth?
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Key Takeaways
Qualcomm launched Snapdragon Ride Pilot, an ADAS developed in collaboration with BMW.
Automotive revenues rose 21% year over year to $984M in the third quarte
QCOM shares slipped 1.2% over the past year, while the industry grew 66.3%.
Qualcomm Incorporated (QCOM - Free Report) recently introduced a leading-edge automated driving system solution called Snapdragon Ride Pilot. The system was developed in collaboration with BMW. Powered by Snapdragon Ride system-on-chip, the automotive driving software stack has set a new benchmark in ADAS (Advanced Driver Assistance System). The solution’s 360° Perception Layer leverages camera and radar systems to facilitate multiple operations such as object detection, surround view, lane recognition, traffic sign interpretation, parking assistance, driver monitoring, and mapping.
The solution is compliant with the latest safety regulations and matches Automotive Safety Integrity Level and Functional Safety standards. It also comes with multi-layered encryption and threat detection to mitigate cybersecurity threats. Incorporating AI models for behavior prediction and behavior planning simplifies handling of complex driving scenarios. The major automaker BMW has already opted to deploy Qualcomm’s latest ADAS solution in its latest Neue Klasse models.
Strong emphasis on innovation and strategic collaboration with major automakers is expected to drive Qualcomm’s prospects in the automotive vertical in the upcoming quarters. During the third quarter, Qualcomm’s Automotive revenues rose 21% year over year to $984 million. Per our estimate in fiscal 2025, Qualcomm is set to generate $3.8 billion in revenues from the Automotive vertical, indicating 32.3% year-over-year growth.
Per a Grand View Research report, the ADAS market size is projected to reach $66.56 billion in 2030 from $34.65 billion in 2024 with a compound annual growth rate of 12.2%. Qualcomm is aiming to capitalize on this market trend.
How Are Competitors Faring?
In the automotive segment, the company faces competition from the NVIDIA Corporation (NVDA - Free Report) and Intel Corporation (INTC - Free Report) .
Intel is steadily expanding its automotive portfolio offerings. In 2025, the company introduced an AI-powered software-defined vehicle (SDV) system-on-chip. The first multi-process node chiplet architecture is expediting innovation in AI native cockpits, integrated ADAS solutions. With its comprehensive Mobileye business offerings related to cameras, in-car networking, sensor chips, roadway mapping, cloud software, machine learning and data management, Intel is gaining ground in the autonomous car technology market. Several manufacturers, such as BMW, Volkswagen, Ford and Nissan, use Intel’s Mobileye solution for driver assistance systems.
NVIDIA also boasts a robust ADAS portfolio. The NVIDIA DRIVE AGX is empowering automakers with a scalable, power-efficient and high-performance AI compute platform to drive development of next-generation ADAS. Its cutting-edge product suite, which includes NVIDIA DRIVE AGX Hyperion, AGX Thor and AGX Orin, is gaining solid market traction. Its broad partner ecosystem, which includes General Motors, Mercedes-Benz, Toyota, Volvo, and Hyundai, is driving innovation.
QCOM’s Price Performance, Valuation and Estimates
Qualcomm shares have declined 1.2% over the past year against the industry’s growth of 66.3%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 13.47 forward earnings, lower than 35.98 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for 2025 have increased 1.11% to $11.87 per share over the past 60 days, while the same for 2026 have improved 0.34% to $11.82.
Image: Bigstock
QCOM Expands Automotive Portfolio: Will it Deliver Sustainable Growth?
Key Takeaways
Qualcomm Incorporated (QCOM - Free Report) recently introduced a leading-edge automated driving system solution called Snapdragon Ride Pilot. The system was developed in collaboration with BMW. Powered by Snapdragon Ride system-on-chip, the automotive driving software stack has set a new benchmark in ADAS (Advanced Driver Assistance System). The solution’s 360° Perception Layer leverages camera and radar systems to facilitate multiple operations such as object detection, surround view, lane recognition, traffic sign interpretation, parking assistance, driver monitoring, and mapping.
The solution is compliant with the latest safety regulations and matches Automotive Safety Integrity Level and Functional Safety standards. It also comes with multi-layered encryption and threat detection to mitigate cybersecurity threats. Incorporating AI models for behavior prediction and behavior planning simplifies handling of complex driving scenarios. The major automaker BMW has already opted to deploy Qualcomm’s latest ADAS solution in its latest Neue Klasse models.
Strong emphasis on innovation and strategic collaboration with major automakers is expected to drive Qualcomm’s prospects in the automotive vertical in the upcoming quarters. During the third quarter, Qualcomm’s Automotive revenues rose 21% year over year to $984 million. Per our estimate in fiscal 2025, Qualcomm is set to generate $3.8 billion in revenues from the Automotive vertical, indicating 32.3% year-over-year growth.
Per a Grand View Research report, the ADAS market size is projected to reach $66.56 billion in 2030 from $34.65 billion in 2024 with a compound annual growth rate of 12.2%. Qualcomm is aiming to capitalize on this market trend.
How Are Competitors Faring?
In the automotive segment, the company faces competition from the NVIDIA Corporation (NVDA - Free Report) and Intel Corporation (INTC - Free Report) .
Intel is steadily expanding its automotive portfolio offerings. In 2025, the company introduced an AI-powered software-defined vehicle (SDV) system-on-chip. The first multi-process node chiplet architecture is expediting innovation in AI native cockpits, integrated ADAS solutions. With its comprehensive Mobileye business offerings related to cameras, in-car networking, sensor chips, roadway mapping, cloud software, machine learning and data management, Intel is gaining ground in the autonomous car technology market. Several manufacturers, such as BMW, Volkswagen, Ford and Nissan, use Intel’s Mobileye solution for driver assistance systems.
NVIDIA also boasts a robust ADAS portfolio. The NVIDIA DRIVE AGX is empowering automakers with a scalable, power-efficient and high-performance AI compute platform to drive development of next-generation ADAS. Its cutting-edge product suite, which includes NVIDIA DRIVE AGX Hyperion, AGX Thor and AGX Orin, is gaining solid market traction. Its broad partner ecosystem, which includes General Motors, Mercedes-Benz, Toyota, Volvo, and Hyundai, is driving innovation.
QCOM’s Price Performance, Valuation and Estimates
Qualcomm shares have declined 1.2% over the past year against the industry’s growth of 66.3%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 13.47 forward earnings, lower than 35.98 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for 2025 have increased 1.11% to $11.87 per share over the past 60 days, while the same for 2026 have improved 0.34% to $11.82.
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.