| | | Gr8, re: Akash at JP Morgan.........................................................................................
Copilot generated
Here’s a structured summary of the major highlights from Akash Palkhiwala’s remarks at the JP Morgan Hardware & Semis Management Access Forum on August 13, 2025:
Automotive Segment
Revenue Targets & Visibility
- Qualcomm is on track to exceed its $4B FY26 automotive revenue target in FY25.
- Targeting $8B by FY29, with >80% of revenue already covered by design wins.
- CAGR of ~20% expected over the next 4 years.
Segment Composition
- Revenue mix: ~? ADAS, remainder split between digital cockpit and connectivity.
- Geographic diversity: wins across China, Europe, Japan, and the U.S.
Content Per Vehicle
- Some vehicles now carry $2K–$3K of Qualcomm content.
- Growth driven by demand for modern digital cockpits and ADAS features.
BMW Partnership
- Jointly developed ADAS stack with BMW, now deployed globally.
- Qualcomm can resell the stack to other OEMs—already has wins outside BMW.
- Strategic entry point into robotics and physical AI markets.
AI & Agentic Workflows
In-Car AI
- Agentic AI will transform cockpit interaction—voice-driven, RAG-enabled, integrated with service data.
- ADAS stacks now trained using synthetic data, accelerating development.
On-Device AI
- Qualcomm sees cars, robotics, wearables, and industrial devices as key on-device AI platforms.
- Emphasis on low power, sensor fusion, and edge compute.
IoT & Personal Devices
XR & Wearables
- Personal agentic AI devices (glasses, watches, lockets) are emerging as a new category.
- Qualcomm chips power nearly all of them—1B parameter models running on-device.
Industrial AI
- Transition from microcontrollers to edge AI in industrial settings.
- Security cameras and factory sensors are key use cases.
PC Market
- Qualcomm aims to lead Windows ecosystem with smartphone-class chips.
- 9% share in $500+ PC segment in U.S./Western Europe.
- New chips launching next month to reinforce performance leadership.
Data Center Strategy
CPU & NPU Focus
- Qualcomm leveraging NUVIA’s custom CPU for data center.
- Focused on inference workloads, not training.
- Alphawave acquisition adds connectivity IP for data center integration.
Revenue Timeline
- Targeting fiscal 2028 for meaningful data center revenue.
- Engaged with one large hyperscaler and other partners like HUMAIN.
Handsets
Android Momentum
- Growth driven by premium-tier content, mix shift, and Android share gains in China.
- New premium-tier chip launching earlier this year (e.g., Xiaomi).
OEM Strategy
- Long-term agreements with Xiaomi and Samsung.
- Internal OEM chips (e.g., Xiaomi’s) not seen as a major threat—Qualcomm leads in performance.
Financial Outlook
QCT Margins
- 30% margin target seen as sustainable despite Apple revenue decline.
- Growth in auto and IoT expected to offset Apple headwinds.
Alphawave adds incremental OpEx, but offset by reductions in mature markets |
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