Qualcomm has shifted from perceived laggard to leader in the personal AI and robotics space by leveraging its Snapdragon platform in partnerships with Meta and Figure. The company’s collaboration on Ray-Ban smart glasses has driven production forecasts to between 20 million and 30 million units over the coming year, reflecting explosive consumer demand. Meanwhile, the Dragonwing IQ10 Series launch, developed with robotics specialist Figure, positions Qualcomm as the critical silicon provider for next-generation humanoid applications, with initial trial deployments already underway in logistics and customer-service environments.

While the core handset segment faces mounting challenges, Qualcomm’s non-handset verticals—particularly automotive and industrial IoT—are achieving robust growth. Automotive engagements have expanded Qualcomm’s revenue base by more than 25% year over year, driven by infotainment and advanced driver-assistance system (ADAS) contracts with leading carmakers. Industrial IoT deployments, spanning factory automation and energy monitoring, have similarly posted double-digit percentage growth, suggesting that these businesses could collectively offset a portion of the pressure in the handset division over the next several quarters.

Analysts at Mizuho recently downgraded Qualcomm from Outperform to Neutral, citing expected modem share erosion in key smartphone partnerships and softer end-market demand. This shift in tone has translated into a notable share price pullback, reflecting investor concern that handset revenue may contract in the near term. Market commentary highlights that upcoming quarterly results will be closely scrutinized for signs of stabilization in design wins and gross-margin trends, as any further downside could slow Qualcomm’s momentum in non-handset segments.

Looking ahead, Qualcomm faces potential cost challenges as it scales production to meet AI and robotics demand. Investments in advanced packaging and expanded foundry commitments could compress gross margins by up to 150 basis points over the next two years. Moreover, industry capacity constraints at leading foundries raise questions about Qualcomm’s ability to secure priority for high-value AI silicon, underscoring the importance of supply-chain execution in maintaining its competitive edge across both handset and non-handset markets.