Qualcomm Expands into Automotive and Data Center Processors Amid 5G Leadership
Qualcomm is enhancing its focus on automotive and data center processors while maintaining a strong position in 5G chipsets. Despite competition from Apple's in-house modem development, Qualcomm's chip and licensing businesses are anticipated to sustain robust cash flow.
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Qualcomm is transitioning into sectors such as automotive, data centers, PCs, and the Internet of Things, while continuing to lead in 5G chipsets and intellectual property. The company’s chip business (QCT) and licensing business (QTL) are projected to produce consistent cash flow, sustaining its narrow moat rating.
Apple's move to manufacture its own baseband chips poses a challenge but is not expected to significantly undermine Qualcomm's overall market position. This shift in focus may provide Qualcomm with new revenue streams but also increases competition in emerging technology sectors.
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