Bill, re: Robotaxis / auto segment- ...........................................................................
Akash on Robotaxis / Auto segment ---JPMorgan webcast
Samik Chatterjee
Got it. Got it. Okay. Robotaxis. A lot of excitement, enthusiasm around it recently. I mean the easy question is what is Qualcomm's sort of view on the market? What -- how does Qualcomm play into this market eventually?
Akash Palkhiwala
Yes. So I think several parts to that question. Our view is clearly, it's a good thing because that drives more demand for autonomous driving features and content. In our minds, there's going to be select pockets where robotaxis will are taking off in the short term. But it doesn't change the overall auto market for a while. And I think we have a great position in it. And this will drive need for more content, more capable chips, more capable stacks. And all those things are positive for us. So I'm excited about what's happening. And as kind of we roll through the next few years, it will show up in our performance.
Samik Chatterjee
But in the announcements of the 20-plus OEMs that you won, like is that -- is actively engaging with robotaxi OEMs a part of that? Or are you sort of -- that will be incremental to the 20 OEMs?
Akash Palkhiwala
Well, we have some content in each of the -- everyone uses our chips, right? So even if you take any robotaxi examples, there is a certain amount of Qualcomm content in those devices as well. It's really the question of how much of our content is being used in those cars and primarily on the ADAS side for cockpit and connectivity, we still have incredible opportunity in those cars.
Samik Chatterjee
Got it. Got it. Okay. Before we transition off from the autos topic, just relative to NVIDIA and Mobileye, which are your key competitors, where do you think your capabilities stand today, particularly if I take a 4 or sort of 5-year view and say, full autonomous driving, obviously, like Mobileye has been talking about it for a while. How do you think about sort of differentiation, particularly with your Ride Flex SoC on that front?
Akash Palkhiwala
Yes. So we don't compete with them in connectivity. We don't compete with them in cockpit. The competition is really limited to ADAS. The Ride Flex concept, if everyone's not understood it yet, I think it's a key one to understand. What we've done is we've taken our digital cockpit chip, and we've enabled ADAS on the same chip. So you can take the same piece of silicon. And if you're a lower- end car, you get to enable ADAS with that same chip. And then as you go to a higher tier car, you can take the exact same chip, put a chip next to it, the same one, and the software is completely compatible, and they can act as backup for each other. And then you go to the premium tier and you want a more capable ADAS chip in that case.
So Flex is a unique way for OEMs to leverage that investment in cockpit and enable ADAS features, especially the low-tier cars and which is, I think, a unique position in the industry, and it allows us to kind of scale up from there. And it shows up in the design wins and the traction we're getting. Overall, when you kind of step back and look at our competitive positioning with those 2 companies, we think we're in an incredible place. I think the scale of our investment in cars across all different technologies is very differentiating versus what they're doing. The SoC in our minds, it's very clear that we have the best SoC in the industry. And then we're going to launch this stack with BMW, which will kind of verify our stack credentials as well.
So I think we're in a very strong position. By the way, today, we released a white paper, so doing it specifically for this conference. We released a white paper on automotive and ADAS and our position in it. So if you're curious about the topic, you can take a look at it.
Samik Chatterjee
We'll do. And maybe just a financial question on that front. You had strong performance in fiscal 3Q in the automotive segment, but the guide for F 4Q implies a moderation in the year-on-year growth rate. Our impression is those growth rates should start to track higher once you have more ADAS coming through from the pipeline into the revenue. So one, is that sort of a fair expectation? Second, what does the timing of that look like?
Akash Palkhiwala
Yes. So it is a fair expectation. We had like incredible growth rates in the first half of the year. So it's a difficult standard to hold anyone to. You're not going to keep growing 60% a year in this market. But we're super happy, as I said earlier, kind of the key thing is based on the targets we have set, we are looking at a CAGR of 20%-ish over the next 4 years, and we're very confident we can well exceed that. Just in terms of timing, the way our ramp -- revenue ramp is working, we started with the connectivity portfolio getting activated and that drove the revenue in the initial years. Over the last 3 or so years, it's mostly been driven by cockpit launches, and that will continue. But now starting -- now going forward, we're going to have ADAS launches that overlay on top, and that will accelerate our growth rate. So that's how the pyramid is playing out over time.
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