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Qualcomm: Taking Artificial Intelligence To A New Level

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Alpha Max


  • Qualcomm has made its first machine learning SDK available to OEMs.
  • The company’s adjacent market opportunities are growing at a CAGR of 18% for the next five years.
  • Its Zeroth platform and neuromorphic computing initiative will help drive growth by capitalizing on the opportunities.

Qualcomm (NASDAQ: NASDAQ:QCOM) announced a few days ago that its subsidiary Qualcomm Technologies will offer OEMs its first machine learning SDK for running their own neural network models on devices powered by Snapdragon 820 SoCs. The devices include smartphones, cars and drones among many others. Gary Brotman, director of product management, Qualcomm Technologies, said:

With the introduction of the new Snapdragon Neural Processing Engine SDK, we are making it possible for myriad sectors, including mobile, IoT and automotive to harnesses the power of Qualcomm Snapdragon 820 and make high-performance, power efficient on-device deep learning a reality.

Qualcomm said in its Q2 earnings call that the company is broadening its presence in "adjacent opportunities," i.e., in adjacent markets where it has growth opportunities. The company has such opportunities in the sectors Brotman mentioned, as presented above in bold. Clearly, Qualcomm's aim is making machine learning an integral part of mobile compute, IoT and automotive.

Qualcomm's Adjacent Markets Strategy

As per Qualcomm's internal estimates combined with third-party estimates, the addressable opportunities in the adjacent areas have a CAGR growth rate of 18% over the next five years. Qualcomm mentioned this in the recent earnings call. The company expects these opportunities could drive nearly $2.5 billion in QCT revenue in FY16.

Although Qualcomm is referring the new opportunities as adjacent market opportunities, the opportunities are primarily part of the evolving IoT and connected devices market. Qualcomm's strategy for ensuring growth in this market is building a solid cognitive computing platform based on its Zeroth AI (artificial intelligence) technology.

In a previous article I mentioned that Qualcomm's IoT strategy is different from that of Intel (INTC). Intel's IoT growth strategy isn't driven by cognitive computing and Chipzilla is aiming at powering as much connected devices as possible by its next generation Atom

This article was written by

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Alpha Max no longer writes on Seeking Alpha.

Analyst’s Disclosure: I am/we are long QCOM, INTC, IBM. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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