Qualcomm Incorporated QCOM has expanded its long-term partnership with Stellantis N.V. STLA to support next-generation connected and artificial Intelligence (AI)-powered vehicles across its global portfolio. The deal strengthens Qualcomm’s position in the growing automotive chip market and supports software-defined vehicle technologies.
Under the agreement, Stellantis will use Qualcomm’s Snapdragon Digital Chassis solutions for advanced driver assistance systems (ADAS), cockpit technologies and vehicle connectivity. The solutions will support Stellantis’ STLA Brain architecture by enabling centralized computing, faster product launches, continuous software updates and AI-driven in-vehicle experiences across multiple vehicle brands, while also improving cost efficiency through platform standardization.
The collaboration also includes Qualcomm’s Snapdragon Ride Pilot ADAS platform, which will support driver assistance and advance hands-free driving features across millions of Stellantis vehicles. It is expected to enhance computing performance and intelligent vehicle capabilities, helping deliver safer, smarter and more convenient driving experiences. In addition, Stellantis-owned automated driving company aiMotive is likely to join Qualcomm under a non-binding agreement, further strengthening its autonomous driving capabilities.
Apart from this deal, the company has partnered with several automakers, including BMW, Volkswagen Group and Mercedes-Benz, to support AI-powered cockpit, connectivity and automated driving solutions. Continuous strategic partnerships and advancements in automotive semiconductors are expected to support Qualcomm’s long-term growth opportunities in the evolving smart mobility market.
How Are Competitors Performing in the Automotive Industry?
Qualcomm faces competition from NVIDIA Corporation NVDA and NXP Semiconductors N.V. NXPI. NVIDIA is expanding its automotive business through partnerships with automakers for autonomous driving and smart cockpit technologies. The company is using its DRIVE platform for ADAS, in-vehicle computing and automated driving features. NVIDIA is benefiting from the growing demand for AI-enabled and software-defined vehicles.
NXP is strengthening its presence in the automotive market with semiconductor solutions for ADAS, vehicle networking and software-defined vehicles. The company is working with automakers and suppliers to support electric and autonomous vehicle technologies. NXP continues to expand its automotive portfolio through innovations in vehicle safety, electrification and intelligent in-car communication technologies.
QCOM’s Price Performance, Valuation and Estimates
Qualcomm shares have gained 63.8% over the past year compared with the industry’s growth of 110%.
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Going by the price/earnings ratio, the company's shares currently trade at 22.07 forward earnings, lower than 35.79 for the industry.
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Earnings estimates for fiscal 2026 have declined 3.4% to $10.79 over the past 60 days, while those for fiscal 2027 have also decreased 6.3% to $10.79.
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Qualcomm currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).