Qualcomm has set a new record in its share price, after outlining plans to grow its chip business beyond the smartphone market into new industries. The company said at an investor presentation that its addressable market is expected to expand from around USD 100 billion currently to USD 700 billion in the next decade, on the growing number of 'smart' devices in need of connectivity.
Qualcomm's expansion is already well underway, with recent acquisitions and new product launches targeting the automotive sector, IoT devices and RF front-end components. As a result, the company expects revenues at Qualcomm Technologies to show a CAGR in the mid-teens over the next three years. The division's operating margin should exceed 30 percent by fiscal 2024.
Handset and RF front-end revenues are projected to grow at least in-line with a 12 percent SAM CAGR by fiscal 2024. Automotive revenues are forecast to jump to USD 3.5 billion in five years and USD 8 billion in 10 years, compared to a current rate of just over USD 1 billion, while IoT revenues will increase to up to USD 9 billion in fiscal 2024, from just over USD 5 billion in the past year to September.
At the same time, the licensing business QTL is expected to maintain its current revenue scale and margin profile.
Qualcomm's shares closed up nearly 8 percent at USD 181.81 following the investor presentation.
