Qualcomm Inc (NASDAQ:QCOM) is harnessing the capabilities of advanced artificial intelligence (AI) to amplify its presence in the automotive chip sector, presenting fresh and imaginative possibilities to automakers.
Known for its cutting-edge chips and modems found in Android phones, the company has been actively promoting its Snapdragon Digital Chassis, a fusion of hardware chips, sensors, and software, to prominent automakers like General Motors Co (NYSE: GM), Hyundai Motor Co, Ltd (OTC: HYMTF), and Volvo Car AB (OTC: VLVOF), according to a CNBC report.
By leveraging the potential of AI, the chipmaker is enticing automakers to adopt an increased array of their chips, enabling the development of scenarios like intelligent driver assistants capable of handling tasks such as navigation, reservations, and other daily computing activities.
While Qualcomm’s revenue from automotive sales stands at a modest $1.32 billion in fiscal 2022 (constituting roughly 3% of its total sales), the company has ambitious projections. It foresees its chips seamlessly integrated into upcoming vehicles within the next several years, targeting sales of over $9 billion by 2031.
Each vehicle incorporating Qualcomm’s chips and software generates revenue spanning from $200 to $3,000. Moreover, the company garners $5 for every car connected to 5G through licensing fees.
In his blog post, Qualcomm’s CEO, Cristiano Amon, envisions vehicles evolving into “novel computing platforms.”
Additionally, the company is diligently working on devising an intelligent user guide utilizing a language model meticulously calibrated on intricate car manuals.
Furthermore, AI could play a pivotal role in driver monitoring, detecting distractions or signs of fatigue.
The integration of AI into Qualcomm’s platform might also pave the way for features that facilitate over-the-air software upgrades for self-driving capabilities. This innovation would empower customers to remotely unlock new features or services.
As of the last check on Thursday, QCOM shares exhibited a rise of 1.53%, reaching $116.00.