Qualcomm CEO: Every car maker wants a direct relationship with a chip provider
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Qualcomm CEO Cristiano Amon said Wednesday that the growth of digital components within vehicles has tightened the relationship between automakers and computer chip providers, a trend that will benefit QCOM over the long term.
"Every car maker wants to have a direct relationship with a chip company," the head of Qualcomm (NASDAQ:QCOM) told CNBC.

Amon explained that a stronger digital platform will allow automakers to expand their revenue base, by allowing the manufacturers to provide additional services. He predicted that this service revenue will eventually eclipse the profit gained from the original vehicle sale.
Meanwhile, the Qualcomm CEO sees a similar dynamic fueling growth in the PC space. He explained that consumers will demand added functionality as they expand the uses for products like laptops.
Amon pointed to the recent pandemic experience as an example. He noted that work-at-home routines turned laptops into communication devices, a process he expects will continue over time.
"There's a lot of things are completely changing what the PC is," he said. "Number one use case of a PC right now is for communication."
He added that functions like AI and gaming would also require more powerful chips in standard consumer PCs.
Earlier this week, QCOM announced a deal with Microsoft to launch custom chips for use in future AR glasses.
QCOM rose nearly 3% in Wednesday's intraday action, climbing to $192.27 at about noon ET. Shares also touched an intraday 52-week high of $193.58.
The stock staged a massive rally in early November amid the release of better-than-expected earnings and a strong forecast. Shares have been moving sideways since, with Wednesday's advance allowing QCOM to edge above the high end of its recent trading range.
QCOM underperformed the broader market throughout 2021. However, its post-earnings rally since November has allowed the stock to outperform over the past couple of months.
The stock is up about 39% since the beginning of November. This compares to a gain of approximately 4% in the S&P 500. You can track the recent movement in this chart.