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We're joined by the quowdcom CEO, Cristiano Amon, who's live in Maui from the Snapdragon Summit, and I keep think chief among what you're talking about is Snapdragon eight Elite, right, and the technology shift is to the in house design processor. But the question for you, Christiano, is the same as it's been for quite a long time, which is what is fundamentally different through this processor in how we use our smartphone the capabilities that an AI smartphone has.

We're joined by the quowdcom CEO, Cristiano Amon, who's live in Maui from the Snapdragon Summit, and I keep think chief among what you're talking about is Snapdragon eight Elite, right, and the technology shift is to the in house design processor. But the question for you, Christiano, is the same as it's been for quite a long time, which is what is fundamentally different through this processor in how we use our smartphone the capabilities that an AI smartphone has.

Very good ed Hello from Maui. Good talking to you, Like we're incredibly excited with the announcements were made yesterday and we have more announcements today. This is our nine edition of the Snapdragon Summing. And what's more exciting about what we're doing with eight Elite is going to be the snap the Snapdragon platform that does two things. With our new custom Orion CBU, you restore the leadership position in performance to the Android ecosystem. Smartphones powered by the Elite are going to be the fastest smart smartphones in the world, period. But that's that's only half the story. The other part of the story it is the platform that has incredible computing capabilities for AI, and we present a vision of the future how the constructs that we are used to in the smartphone of OSS and apps and apps stores are going to fundamentally change as we have agents that are going to do a lot of the use cages. First, one of the most exciting things for Qualking of genitive AI is that now computers can speak the language of humans. And that's where we are behind. There's a snap Dragon, there's a display, there's a human and that transition is about to happen. So we build the platform for that.

Very good ed Hello from Maui. Good talking to you, Like we're incredibly excited with the announcements were made yesterday and we have more announcements today. This is our nine edition of the Snapdragon Summing. And what's more exciting about what we're doing with eight Elite is going to be the snap the Snapdragon platform that does two things. With our new custom Orion CBU, you restore the leadership position in performance to the Android ecosystem. Smartphones powered by the Elite are going to be the fastest smart smartphones in the world, period. But that's that's only half the story. The other part of the story it is the platform that has incredible computing capabilities for AI, and we present a vision of the future how the constructs that we are used to in the smartphone of OSS and apps and apps stores are going to fundamentally change as we have agents that are going to do a lot of the use cages. First, one of the most exciting things for Qualking of genitive AI is that now computers can speak the language of humans. And that's where we are behind. There's a snap Dragon, there's a display, there's a human and that transition is about to happen. So we build the platform for that.

The forecast is Christiano see the smartphone market growing driven by Android. And what surprised me about this generation processor is you get them into handsets quite quickly. Have you done the math on how you see that convert into market growth? How quickly the AI smartphone is a top line driver for you.

The forecast is Christiano see the smartphone market growing driven by Android. And what surprised me about this generation processor is you get them into handsets quite quickly. Have you done the math on how you see that convert into market growth? How quickly the AI smartphone is a top line driver for you.

Look, that's the multi billion dollar question. So I'm going to try to give you an answer. Even though it's very hard to predict, I think it's very easy to see and I have conviction in that. Well, think the next five years we're probably going to have all of us with an AI smartphone. The problem is you have to wait for the new use cases to come up. It reminds me of the transition from feature phones to smartphones. In the beginning we talk about apps, So we have ten apps and became hundreds of apps, then thousands of apps, and we started to see that happening. Right now we have like twenty AI different use cases, and maybe that's going to become one hundred. So I think we are on a trajectory to get to that point. Maybe five years is where it's that transition will be concluded. And hopefully what we all expect to see is the smartphone market is going to grow and we're going to see you great style.

Look, that's the multi billion dollar question. So I'm going to try to give you an answer. Even though it's very hard to predict, I think it's very easy to see and I have conviction in that. Well, think the next five years we're probably going to have all of us with an AI smartphone. The problem is you have to wait for the new use cases to come up. It reminds me of the transition from feature phones to smartphones. In the beginning we talk about apps, So we have ten apps and became hundreds of apps, then thousands of apps, and we started to see that happening. Right now we have like twenty AI different use cases, and maybe that's going to become one hundred. So I think we are on a trajectory to get to that point. Maybe five years is where it's that transition will be concluded. And hopefully what we all expect to see is the smartphone market is going to grow and we're going to see you great style.

When we talk about though the growth in that market, Christiano, are we talking about new entrants into that space and I'm talking on the customer side here, or is this simply converting the existing customer base that's already out there.

When we talk about though the growth in that market, Christiano, are we talking about new entrants into that space and I'm talking on the customer side here, or is this simply converting the existing customer base that's already out there.

You know. I think the typical answer that you're going to provide to this question is you probably expect existing players in the smartphone world to just build AI capable smartphones. But it's really hard to predict every time we have a change in the industry. I think the mobile industry is one that every generation of wireless players did change, so that could happen too. I think what we really excited about it exactly not really the players, but how the experience is going to change, how the devices are going to change, and that's going to require a lot of computing power for AI and that's what Qualcome's going to do. Welcome's really been positioning itself to be the company doing ANI at the edge and that's not only phones as phones, as PC's, as cars, is smart glasses. And I think that's the story of the company right now.

You know. I think the typical answer that you're going to provide to this question is you probably expect existing players in the smartphone world to just build AI capable smartphones. But it's really hard to predict every time we have a change in the industry. I think the mobile industry is one that every generation of wireless players did change, so that could happen too. I think what we really excited about it exactly not really the players, but how the experience is going to change, how the devices are going to change, and that's going to require a lot of computing power for AI and that's what Qualcome's going to do. Welcome's really been positioning itself to be the company doing ANI at the edge and that's not only phones as phones, as PC's, as cars, is smart glasses. And I think that's the story of the company right now.

With regards to that story, and I'm almost asking this question on behalf of investors, and I would like you to answer it. For investors, to a certain extent, this stock has been left behind and with regards to the AI focus that this market has had all year long, does these new chips and the new products that they will go into, well that changed the narrative to the upside for investors on both the top and the bottom line.

With regards to that story, and I'm almost asking this question on behalf of investors, and I would like you to answer it. For investors, to a certain extent, this stock has been left behind and with regards to the AI focus that this market has had all year long, does these new chips and the new products that they will go into, well that changed the narrative to the upside for investors on both the top and the bottom line.

Look, I have a slightly different opinion if you look where the evaluation the company is right now. We're starting to get credit for the fact that we created new growth markets for Welcome beyond hnsins. You know the stock had a lower multiple in the past because most of our revenue, and there's to a number one business is mobile and mobile was not growing. But what we have done is something different. We realize there are new end markets for technology and we build an automotive position. I think the snapdrag and digital CHASHI now is the key asset for the industry and automo. If we have a forty five billion dollar contracted pipeline, one third of that is ADAS in autonomy. We enter the PC space and the transition of PC to Microsoft biler plus AIS and we're going to start building industrial So I actually we have been building new business for welcome and that has had a positive impact on our multiple. With that, this AI transitions about what happened from the data center to the edge, and which is preparing yourself for that.

Look, I have a slightly different opinion if you look where the evaluation the company is right now. We're starting to get credit for the fact that we created new growth markets for Welcome beyond hnsins. You know the stock had a lower multiple in the past because most of our revenue, and there's to a number one business is mobile and mobile was not growing. But what we have done is something different. We realize there are new end markets for technology and we build an automotive position. I think the snapdrag and digital CHASHI now is the key asset for the industry and automo. If we have a forty five billion dollar contracted pipeline, one third of that is ADAS in autonomy. We enter the PC space and the transition of PC to Microsoft biler plus AIS and we're going to start building industrial So I actually we have been building new business for welcome and that has had a positive impact on our multiple. With that, this AI transitions about what happened from the data center to the edge, and which is preparing yourself for that.

In the smartphone context, what's happening in China is so interesting. Let's compare with Apple right in the iPhone sixteen. They're being rewarded in that market on Apple intelligence features that aren't yet out in China and won't be for some time. So when you think about snap Dragon eight Elite and your kind of first mover advantage, do you feel you have a first mover advantage in China when it comes to the AI smartphone.

In the smartphone context, what's happening in China is so interesting. Let's compare with Apple right in the iPhone sixteen. They're being rewarded in that market on Apple intelligence features that aren't yet out in China and won't be for some time. So when you think about snap Dragon eight Elite and your kind of first mover advantage, do you feel you have a first mover advantage in China when it comes to the AI smartphone.

So let me talk about our smartphone business in China. We have been powering the premium devices of all the Chinese brands, companies like Honor, One Plus, Opo, Vivo, show Me, and what we have seen the China Internet is a different ecosystem. All of those companies has been creating AI use cases and what we see in China that we like. The market has stabilized it, but we see consumers moving up. So while the market doesn't grow as much, what is really growing is the premium tier. Consumers want to buy a better device and what we have seen this over here. So we're actually happy with our position in China, and as we go into other markets, we see our partnerships in China increasing. One of the examples, we're now partnering with every single Chinese EV company as well for automotive.

So let me talk about our smartphone business in China. We have been powering the premium devices of all the Chinese brands, companies like Honor, One Plus, Opo, Vivo, show Me, and what we have seen the China Internet is a different ecosystem. All of those companies has been creating AI use cases and what we see in China that we like. The market has stabilized it, but we see consumers moving up. So while the market doesn't grow as much, what is really growing is the premium tier. Consumers want to buy a better device and what we have seen this over here. So we're actually happy with our position in China, and as we go into other markets, we see our partnerships in China increasing. One of the examples, we're now partnering with every single Chinese EV company as well for automotive.

Because you're dedicating a day to those new chips and automotive. One of the questions from our audience is whether that's now becoming an isolated business where if there's a kind of flywheel effect through the diversification efforts that you kind of were helming.

Because you're dedicating a day to those new chips and automotive. One of the questions from our audience is whether that's now becoming an isolated business where if there's a kind of flywheel effect through the diversification efforts that you kind of were helming.

So thank you. Pretty question. Right now, on stage, we're announcing the most powerful process that we've ever done in the history of our company, which is our new platform for automotive. We're announcing two chips is Snapdragon Elite Cockpit and Snapdragon Elite Ride, and that has been designed for what we believe is going to happen with software defined vehicles. Cars are going to get better over time. Is feature proving the AI capabilities for GENI use cases when you're behind the wheel, Just as an example, is a twelve x increase in performance versus the prior automotive chip that we have. It's an order magnitude increase. And I think the way we look into this is we build a strong automotive business by being the digital platform of choice for all the car makers. Now we wanted to future prove that platform for the future JENI use cases running on cars at the edge.

So thank you. Pretty question. Right now, on stage, we're announcing the most powerful process that we've ever done in the history of our company, which is our new platform for automotive. We're announcing two chips is Snapdragon Elite Cockpit and Snapdragon Elite Ride, and that has been designed for what we believe is going to happen with software defined vehicles. Cars are going to get better over time. Is feature proving the AI capabilities for GENI use cases when you're behind the wheel, Just as an example, is a twelve x increase in performance versus the prior automotive chip that we have. It's an order magnitude increase. And I think the way we look into this is we build a strong automotive business by being the digital platform of choice for all the car makers. Now we wanted to future prove that platform for the future JENI use cases running on cars at the edge.

I've got to ask you the tough question here, Cristiano, and that's really about your ambitions to grow this company and expand it through acquisition. Of course, you've seen the media reports about your interests, your presumed interests in Intel. Do you have any intent on pursuing that deal anytime this year.

I've got to ask you the tough question here, Cristiano, and that's really about your ambitions to grow this company and expand it through acquisition. Of course, you've seen the media reports about your interests, your presumed interests in Intel. Do you have any intent on pursuing that deal anytime this year.

I'm lately I'm getting this question all the time. Look, we don't comment on rumors, but let me tell you what we're actually busy doing. What we're busy doing is we have a unique opportunity for Qualcom for the PC space. We saw the entry point driven by two transitions. One transition is mobile PC conversions. The other one is PC becoming an AI platform with the Microsoft launge of fot Pilot plucks. So what we did We build the fastest process or platform, which is actually leads and right now it is still the fast performing processor. Both the incumbency in the PC based on our announcement creating new products and accelerated the new products compete with us and that wasn't anough. So we see now an incredible opportunity for us in the PC, and especially as PC makers have questions about the future, they look at WelCom as a great player.

I'm lately I'm getting this question all the time. Look, we don't comment on rumors, but let me tell you what we're actually busy doing. What we're busy doing is we have a unique opportunity for Qualcom for the PC space. We saw the entry point driven by two transitions. One transition is mobile PC conversions. The other one is PC becoming an AI platform with the Microsoft launge of fot Pilot plucks. So what we did We build the fastest process or platform, which is actually leads and right now it is still the fast performing processor. Both the incumbency in the PC based on our announcement creating new products and accelerated the new products compete with us and that wasn't anough. So we see now an incredible opportunity for us in the PC, and especially as PC makers have questions about the future, they look at WelCom as a great player.

Christiana, the interest on the whole Intel story was because you made progress on your own on based processes, cloud con processes. So YX eighty six, just give yourself a score out of ten on how you did on AIPC so far.

Christiana, the interest on the whole Intel story was because you made progress on your own on based processes, cloud con processes. So YX eighty six, just give yourself a score out of ten on how you did on AIPC so far.

Look given the amount of skepticism that we got about people telling we will not succeed in PCs and would not be able to compete, I'll give us a very high grade. And the platform design traction is awesome. We launched twenty two different laptops across all bands, Dell, HP, Lenovo, Asus, Aser, Chansung, and we continue to see design traction, especially as Microsoft prepares a transition for Windows to an AI. And one thing that we were tasked by Microsoft to do and we did it, we restore the performance leadership of computing back to the Windows ecosystem. That's a great testimony of I think they qualcom engineering capability. In our focus and growing this business.

Look given the amount of skepticism that we got about people telling we will not succeed in PCs and would not be able to compete, I'll give us a very high grade. And the platform design traction is awesome. We launched twenty two different laptops across all bands, Dell, HP, Lenovo, Asus, Aser, Chansung, and we continue to see design traction, especially as Microsoft prepares a transition for Windows to an AI. And one thing that we were tasked by Microsoft to do and we did it, we restore the performance leadership of computing back to the Windows ecosystem. That's a great testimony of I think they qualcom engineering capability. In our focus and growing this business.

There would certainly be a compliment though, to getting at least some part of Intel's business, whether it's the programmable chip division, which we already know that Intel has plans to try to spin off, and other aspects of that as well. Do you see a compliment there at all?

There would certainly be a compliment though, to getting at least some part of Intel's business, whether it's the programmable chip division, which we already know that Intel has plans to try to spin off, and other aspects of that as well. Do you see a compliment there at all?

Look, it's important to understand the POCOM strategy, and we have been very clear about that. Our strategy is very simple. We define our company. We have three assets everything wireless connectivity, and we take pride in being the number one in cellular and Wi Fi on everything wireless, high performance, low power compute, and artificial intelligence for the edge. And what we did we applied those street technologies to all markets that are growing and we could leverage our technology for phones. So we went from phones to cars to the PCs and now industrial and that has been part of a strategy we did all or organically. With some of the small acquisitions. We feel we have a very competitive roadmap and we're thinking about the new what is the new innovation that is coming for those markets, and that's where we're driving. I will remain focused on.

Look, it's important to understand the POCOM strategy, and we have been very clear about that. Our strategy is very simple. We define our company. We have three assets everything wireless connectivity, and we take pride in being the number one in cellular and Wi Fi on everything wireless, high performance, low power compute, and artificial intelligence for the edge. And what we did we applied those street technologies to all markets that are growing and we could leverage our technology for phones. So we went from phones to cars to the PCs and now industrial and that has been part of a strategy we did all or organically. With some of the small acquisitions. We feel we have a very competitive roadmap and we're thinking about the new what is the new innovation that is coming for those markets, and that's where we're driving. I will remain focused on.

That, Christiano. The crowdcome of today is very different to the one that that I first met six years ago. When I speak to investors and analysts, they do worry about kind of billions of dollars of lost revenue, particularly with key customer Apple and Modem. But the question I get a lot for you is whether these kind of newer business lines snap Dragon eight ely the automotive side account for make up for some of that lost legacy business going forward from twenty twenty five.

That, Christiano. The crowdcome of today is very different to the one that that I first met six years ago. When I speak to investors and analysts, they do worry about kind of billions of dollars of lost revenue, particularly with key customer Apple and Modem. But the question I get a lot for you is whether these kind of newer business lines snap Dragon eight ely the automotive side account for make up for some of that lost legacy business going forward from twenty twenty five.

Look, I love answering this question because you know that has been the story of Qualcom, of the best evy investors saying, look, you have a you have the best modems in the world, you have a very strong position with Apple, but you know they're eventually going to do their own mode. I'm going to lose this business. So we took a completely different approach when I became COEO. I had an investor day in twenty twenty one and we said that they're going to be that revenue is going to be removed from the model, and we are going to be creating new growth markets for Qualcom and we have a much bigger SAM opportunity than we have with mobile. We're just executing on this and the results are showing. Look, forty five billion dollars of contracted pipeline and automotive. It's not a small number, and you have seen in our earnings results automotive has been record quarter over quarter. Because we're gaining share. That's the reason we are getting to the BC. That's the reason we're getting to the industrial because at the end of the day, it's not only about this one customer revenue, whether we have it or we don't have it. Exactly, can we operate in growth markets and expand the company's SAM and that's what we're doing.

Look, I love answering this question because you know that has been the story of Qualcom, of the best evy investors saying, look, you have a you have the best modems in the world, you have a very strong position with Apple, but you know they're eventually going to do their own mode. I'm going to lose this business. So we took a completely different approach when I became COEO. I had an investor day in twenty twenty one and we said that they're going to be that revenue is going to be removed from the model, and we are going to be creating new growth markets for Qualcom and we have a much bigger SAM opportunity than we have with mobile. We're just executing on this and the results are showing. Look, forty five billion dollars of contracted pipeline and automotive. It's not a small number, and you have seen in our earnings results automotive has been record quarter over quarter. Because we're gaining share. That's the reason we are getting to the BC. That's the reason we're getting to the industrial because at the end of the day, it's not only about this one customer revenue, whether we have it or we don't have it. Exactly, can we operate in growth markets and expand the company's SAM and that's what we're doing.

And this is exactly what we've heard from investors, exactly what we've heard from analysts. They want to see that diversification. And just to be fair, Christiano, they've given you a lot of pats on the back so far. There's still a long way to go. And I do want to circle as we end this conversation back to the automotive space, because we've been focusing a lot of that today on this show, and there are concerns here that we sort of reached some sort of bump in the road with the adoption of new vehicles, whether it's evs or autonomous vehicles or really just vehicles that are much more sort of technologically inclined. Where do you fit into that space longer term? Is that going to be a bigger market and more importantly, is going to be a bigger market for Qualcomm?

And this is exactly what we've heard from investors, exactly what we've heard from analysts. They want to see that diversification. And just to be fair, Christiano, they've given you a lot of pats on the back so far. There's still a long way to go. And I do want to circle as we end this conversation back to the automotive space, because we've been focusing a lot of that today on this show, and there are concerns here that we sort of reached some sort of bump in the road with the adoption of new vehicles, whether it's evs or autonomous vehicles or really just vehicles that are much more sort of technologically inclined. Where do you fit into that space longer term? Is that going to be a bigger market and more importantly, is going to be a bigger market for Qualcomm?

Very good. So, look, Romaine, one of the unique things of our automotive business we are kind of immune to that. We're not Our position is not dependent on electrification or internet combustion. Our position is not really dependent off the shifts that you have in the share across different companies because what we have done, we saw that cars are going to become digital digital computers on wheels. Car companies are going to become tech companies, and we build the platform for the car companies. And what happened is that had resonated well. So we're designed across all brands, all the Koreans, all the Japanese, the Europeans, the Americans, the Chinese. Every single car company now is using some portion of the snaptrag and digital cockpit. And what is happening with our results results have been independent of the automotive market and more about gaining share, and as the new cars come out with our platforms, we're starting to see that going to revenue. We made the projection of four billion by twenty six and then nine billion by the end of the decade, and we're tracking that.

Very good. So, look, Romaine, one of the unique things of our automotive business we are kind of immune to that. We're not Our position is not dependent on electrification or internet combustion. Our position is not really dependent off the shifts that you have in the share across different companies because what we have done, we saw that cars are going to become digital digital computers on wheels. Car companies are going to become tech companies, and we build the platform for the car companies. And what happened is that had resonated well. So we're designed across all brands, all the Koreans, all the Japanese, the Europeans, the Americans, the Chinese. Every single car company now is using some portion of the snaptrag and digital cockpit. And what is happening with our results results have been independent of the automotive market and more about gaining share, and as the new cars come out with our platforms, we're starting to see that going to revenue. We made the projection of four billion by twenty six and then nine billion by the end of the decade, and we're tracking that.

All right, Christiana, we have to leave it there. We always appreciate your time, of course, out there in Hawaii. The CEO of Qualcom, Cristiano Amone, and are very special thanks to the co host of Bloomberg Technology, Ed Ludlow,

All right, Christiana, we have to leave it there. We always appreciate your time, of course, out there in Hawaii. The CEO of Qualcom, Cristiano Amone, and are very special thanks to the co host of Bloomberg Technology, Ed Ludlow,