Qualcomm CEO sees robotics as major growth engine within two years, launches Dragonwing chips

Qualcomm CEO sees robotics as a 'larger opportunity' within 2 years

BARCELONA, Spain -- Robotics will become a "larger opportunity" for Qualcomm within the next two years, CEO Cristiano Amon told CNBC, as the chip giant continues its foray into areas beyond the smartphone. In January, Qualcomm launched a robotics processor under the Dragonwing brand name, as it looks to create a chipset that can work on multiple robotics platforms. It's a similar approach the company has taken to smartphones, where its Snapdragon processors have become a key chip used by electronics companies. "I think robotics will start to get scale within the next two years," Amon told CNBC on Monday, in response to a question about when robotics becomes a material business for Qualcomm. "I think it's going to become like a larger opportunity within two years," he added during the interview at the Mobile World Congress in Barcelona, Spain. There are lots of different types of robots, from those focused on industrial applications such as robotic arms, through to humanoid robots, the type Tesla and a plethora of Chinese companies are developing. There are various forecasts for the size of the robotics market. McKinsey projects the market for general-purpose robots could reach $370 billion by 2040, while analysts at RBC Capital Markets have forecast a global total addressable market for humanoids of $9 trillion by 2050. Robots need processors and a lot of difficult engineering to move. But the increased bullishness around robotics has also come due to advances in AI models. These models are designed to power the robot so it can understand the world around it and act accordingly. Robots are often spoken about in a category called physical AI. "People have said just robotics alone could be a trillion-dollar opportunity in terms of market size ... the reality is, we see now, because of physical AI, robots have become a lot more useful," Amon said. Jensen Huang, CEO of Nvidia, said last year that robotics is one of the company's major potential sources of growth. Robotics is a key theme at Mobile World Congress, with different robots on display. On Sunday, Chinese smartphone player Honor teased its first humanoid robot.

What's Going On With Qualcomm Stock Tuesday? - Qualcomm (NASDAQ:QCOM)

Qualcomm CEO Bets Big on Robotics As Next Billion-Dollar Growth Engine Qualcomm Inc. (NASDAQ:QCOM) is positioning robotics as its next major growth engine, with CEO Cristiano Amon signaling the business could scale meaningfully within two years. Beyond Smartphones: Qualcomm Bets On Robotics Amon said robotics will become a "larger opportunity" for the company within the next two years as it expands beyond smartphones. In January, Qualcomm introduced a robotics processor under its Dragonwing brand, aiming to develop a chipset that can run across multiple robotics platforms -- an approach similar to how its Snapdragon processors power a wide range of smartphones. "I think robotics will start to get scale within the next two years," Amon told CNBC on Monday when asked when the segment could become meaningful for Qualcomm. "I think it's going to become like a larger opportunity within two years," he added at Mobile World Congress in Barcelona. AI Advances Drive Robotics Growth Analysts have projected significant long-term growth for the sector. McKinsey estimates the general-purpose robotics market could reach $370 billion by 2040, while RBC Capital Markets forecasts a $9 trillion total addressable market for humanoid robots by 2050. Robots rely on advanced processors and complex engineering, and recent advances in AI models -- often described as physical AI -- have made them more capable. "People have said just robotics alone could be a trillion-dollar opportunity in terms of market size ... the reality is, we see now, because of physical AI, robots have become a lot more useful," Amon said. Nvidia CEO Jensen Huang has also identified robotics as a major future growth area for his company. QCOM Price Action Qualcomm shares were down 2.15% at $138.00 during premarket trading on Tuesday, according to Benzinga Pro data. Negative sentiment is driven by Qualcomm's warning that booming AI data center memory demand is diverting supply away from consumer electronics, intensifying an already tight memory market, and deepening shortages. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.