Back to top

Image: Shutterstock

Will Qualcomm's Next-Generation Snapdragon Elite Chip Fuel Its Shares?

Read MoreHide Full Article

Key Takeaways

  • Qualcomm's Snapdragon Elite platform powers ECARX Zenith for intelligent vehicle applications.
  • The platform integrates CPU, GPU, and AI for infotainment, ADAS, and digital cockpit functions.
  • Qualcomm partners with Hyundai, Volkswagen, and Bosch to advance software-defined and autonomous vehicles.

Qualcomm Incorporated’s (QCOM - Free Report) Snapdragon Elite platform (SA8797) for automotive will power ECARX Holdings Inc.’s (ECX - Free Report) Zenith computing platform, featuring high performance, flexibility, and support for next-generation intelligent vehicle applications. The collaboration will help Qualcomm support automakers in delivering advanced, safer, and software-defined vehicle experiences to millions of drivers worldwide.

The Snapdragon Elite is a high-performance automotive system-on-chip (SoC) platform that integrates CPU, GPU, and AI capabilities on a single chip, enabling infotainment, digital cockpit, and Advanced Driver Assistance Systems (ADAS) functions to run together with strong safety and reliability. Its scalable and modular design supports the development of future-ready, software-defined vehicles with advanced connectivity and upgradeability.

Qualcomm recently introduced the Snapdragon Ride Flex SoC, a high-performance automotive chip that supports ADAS and autonomous driving, efficiently managing complex tasks with advanced AI, enhanced safety features, and reduced power consumption. The company's chip portfolio also offers Snapdragon Ride for ADAS, Snapdragon Cockpit for infotainment and digital displays, and Snapdragon Ride Pilot for hands-free driving features.

Per a report from Grand View Research, the digital automotive industry will reach nearly $43.24 billion by 2030, witnessing a CAGR of 10.1%. Qualcomm recently teamed up with Hyundai Mobis to develop software-defined vehicles and ADAS using its Snapdragon Ride Flex platform, and is also working with Volkswagen and Bosch on automated driving with its Snapdragon Ride Elite platform and 5G technology. With its innovation and partnerships, Qualcomm is well-positioned to grow in the expanding automotive technology market.

How Are Competitors Advancing in the Automotive Chip Market?

Qualcomm faces competition from NXP Semiconductors N.V. (NXPI - Free Report) and NVIDIA Corporation (NVDA - Free Report) . NXP is focusing on next-generation automotive chips and strategic partnerships to advance ADAS, connectivity, and electric vehicle technologies. The company has partnered with Rimac Technology to develop centralized vehicle systems using its S32E2 processors for software-defined vehicle control and acquired TTTech Auto to integrate safety-critical middleware into its CoreRide platform to accelerate software-defined vehicle development.

NVIDIA is growing its automotive chip business by using DRIVE AGX and DriveOS to power autonomous driving, AI, and in-car systems, while partnering with automakers to deploy ADAS and robotaxi solutions. NVIDIA is working with Hyundai Motor Group to bring AI computing and simulation tools to vehicles, autonomous driving, and smart factories.

QCOM’s Price Performance, Valuation and Estimates

Qualcomm shares have lost 10.3% over the past year compared with the industry’s growth of 40.8%.

Zacks Investment Research
Image Source: Zacks Investment Research

Going by the price/earnings ratio, the company's shares currently trade at 12.6 forward earnings, lower than 32.49 for the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings estimates for 2026 have declined 1.2% to $12.00 over the past 60 days, while those for 2027 have also declined 2.1% to $12.33.

Zacks Investment Research
Image Source: Zacks Investment Research

Qualcomm stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Published in