Qualcomm Inc. QCOM recently announced a partnership with CP PLUS, India's leading video security company. The partnership aims to integrate the advanced on-device AI and edge processing capabilities of Qualcomm Dragonwing processors with CP PLUS' comprehensive product ecosystem and sales network.
According to a report by Grand View Research, the AI video market size was $3.86 billion in 2024. It is projected to reach $42.29 billion in 2033, with a compound annual growth rate of 32.2%. North America currently dominates the AI video market. However, emerging markets such as India are quickly catching up. Qualcomm aims to capitalize on this emerging market trend by expanding its portfolio and forming strategic alliances with other industry leaders.
Advanced video security and edge AI provide the scale, resiliency, and efficiency needed to transform industrial and public infrastructure systems. Qualcomm prides itself on future-ready intelligent video capabilities. Edge AI increases the security of sensitive data by reducing exposure to external networks. Air-gapped architecture minimizes cybersecurity threats, which are critical for industrial and public infrastructure. The company also offers the Qualcomm Insight Platform, which provides on-site video intelligence with minimal server dependency and reduced latency. It also provides real-time alerts and notifications with actionable insights.
The smartphone market is a major revenue driver for Qualcomm. This industry faces intense competition. Some customers, such as Apple and Samsung, have moved to in-house chip development. It also faces challenges from low-cost chipmakers such as MediaTek and Rockchip. Against this backdrop, Qualcomm is taking several steps to expand its portfolio offerings and tap into emerging high-growth markets such as AI video intelligence. This bodes well for long-term growth.
How are your competitors doing?
Nvidia NVDA has established itself as a leading player in AI-powered video analytics. NVIDIA GPUs facilitate real-time video analysis and ensure rapid detection and tracking in surveillance systems. NVIDIA Metropolis is also expected to gain traction in the market. The Vision AI Application Platform facilitates the development and deployment of AI agents with a wide range of use cases, including improving efficiency and safety in smart cities, manufacturing, retail, and logistics.
motorola MSI continues to be a prominent provider of AI-enabled video intelligence solutions worldwide. Motorola Avigilon's cloud-based video and access control solution offers innovative features such as appearance search, facial recognition, anomalous activity detection, and license plate recognition. With these cutting-edge features, Motorola has gained strong market traction in several public safety agencies around the world. Motorola expects to record strong demand across video security and services, land mobile radio products and related software, benefiting from its strong fundamentals.
QCOM Price Performance, Ratings and Quotes
Over the past year, Qualcomm stock has gained 14.1%, compared to the industry's growth rate of 54%.
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In terms of price-to-earnings ratio, the company's stock is currently trading at 14.81 times forward earnings, which is lower than the industry's 41.02 times.
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Revenue forecasts for 2025 and 2026 have improved over the past 60 days.
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Qualcomm stock currently carries a Zacks Rank #3 (Hold). You can view See the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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