Qualcomm and Google Cloud are expanding their collaboration to enhance in-car experiences through agentic AI, integrating Google Gemini models with Qualcomm Snapdragon Digital Chassis to create multimodal, hybrid edge-to-cloud AI agents for automakers.

This partnership offers automakers a toolkit and reference architecture to accelerate the development of software-defined vehicles, enabling highly personalized and branded interactions beyond basic commands.

The tools provided help reduce development time by offering optimized architectures and pre-built features for essential vehicle functions, supporting the shift towards connected, autonomous vehicles.

Qualcomm’s automotive segment achieved a record $984 million in revenue in Q3, up 21% year-over-year, contributing significantly to the company's total revenue of $10.37 billion, despite challenges in handset demand and potential headwinds from China and Apple’s chip transition.

Automotive is a key growth area for Qualcomm, with the company emphasizing its strategic focus on expanding beyond smartphones into automotive chips, especially as its partnership with Apple is set to end in 2027 with Apple shifting to in-house chip production.

Qualcomm’s integrated solutions support diverse hardware configurations, combining ADAS and infotainment into a single Snapdragon Ride Flex SoC, promoting flexible, future-ready Software-Defined Vehicles.

Mercedes-Benz is utilizing Qualcomm’s Snapdragon Digital Chassis to power its digital cockpits, supporting high-resolution displays, augmented reality navigation, AI-driven personalization, and immersive audio experiences with Dolby Atmos.

Qualcomm CEO Cristiano Amon describes cars as a new computing space, where agent-based interfaces enable natural interactions through voice and visual cues, transforming vehicle user experiences.

Agentic AI systems can act independently, understand context, and respond in a human-like manner, facilitating features like advanced voice assistants capable of handling multiple tasks across devices.

Deploying agentic AI in vehicles offers benefits such as predictive maintenance, enhanced navigation, traffic management, and integration with smart home systems, aiming to improve safety and user convenience.

Qualcomm’s stock was trading slightly higher at $160 premarket on Monday, reflecting investor optimism, while Wall Street analysts maintain a moderate buy rating with an average target price of $180.33, implying a 12.71% upside.

Despite recent satisfactory financial results, Qualcomm’s stock has underperformed compared to Alphabet and the broader US100 index over the past six months, with no specific negative impact from its new automotive and AI initiatives.

Analysts remain optimistic about Qualcomm’s growth prospects in automotive and IoT sectors, despite risks related to China exposure and shifts in Apple’s chip sourcing.