Shares of Qualcomm Incorporated jumped 12% on Friday after the chipmaker announced a significant expansion of its multi-year technology partnership with global automaker Stellantis. The deal will integrate Qualcomm’s Snapdragon Digital Chassis system-on-chips across Stellantis’s entire next-generation vehicle lineup, covering cockpit systems, connectivity, and advanced driver assistance systems.
The expanded agreement also includes Qualcomm’s Snapdragon Ride Pilot platform, which supports active safety features and Level 2+ hands-free autonomous driving capabilities across millions of vehicles. In a notable move, Stellantis’s automated driving and simulation company, aiMotive, is set to join Qualcomm Technologies as part of the deal. Qualcomm’s automotive segment already generates over $5 billion in annual revenue, and this partnership reinforces the company’s push to diversify beyond the cyclical smartphone chip market.
Nakul Duggal, Qualcomm’s EVP and Group General Manager for Automotive, Industrial and Embedded IoT, called the expansion “a meaningful inflection point for both companies.” Melius Research raised its price target on Qualcomm shares to $220 from $170 while maintaining a Hold rating, citing growing optimism around AI and automotive semiconductor companies.
Broader enthusiasm around artificial intelligence also supported the stock. Reports indicated AI chip startup Tenstorrent has attracted early takeover interest from potential buyers including Intel and Qualcomm. Additionally, Counterpoint Research projected that smartphones capable of supporting agentic AI features will rise from 4% of the market in 2025 to 32% by 2027, potentially boosting long-term demand for Qualcomm’s mobile processors. The S&P 500 added 0.65% and the Nasdaq Composite gained 0.68% during the session.
