By Emily Russell

Since its founding in 1985, Qualcomm has made its name as a wireless technology company. It patents and licenses the technology that mobile devices need for connectivity and processing, including modems for iPhones and Snapdragon core processing units for Android smartphones.

"That is the old business of Qualcomm," Cristiano Amon, the company's president and CEO, told Barron's editor at large Andy Serwer in an interview for the At Barron's video series.

While licensing wireless technology is still the largest component of Qualcomm's revenue in earnings, the company's "growth engine" is now semiconductor chips, Amon said. Its chips are already being used in smart-watches, smart-glasses, and automobiles.

"We are creating a new suite of customers, from energy companies, to retail companies, to manufacturing companies," Amon said. "It is an ever-expanding list."

Amon, who was promoted to head of Qualcomm in 2021, said his strategy is focused on market diversification and technological innovation.

But Qualcomm isn't immune to the headwinds facing U.S. companies this year. Its stock fell nearly 20% in the days following President Donald Trump's "Liberation Day" tariff announcements in April. Shares have since rebounded.

"Right now, we have no direct tariff exposure," Amon said. Qualcomm has a "diverse" supply chain and produces roughly 20% of its chips in the U.S. with partners that include Samsung and TSMC, according to Amon. The chips they do produce in China have so far been excluded from Trump's tariffs.

So the trade war hasn't directly impacted Qualcomm's bottomline -- yet. A shift in consumer behavior could change that.

"Phones are a good proxy of consumer confidence and economic activity," Amon said. "So we will see how that develops."

Amon trained as an electrical engineer in Brazil, where he was born and raised. His engineering career took him to Japan to work for NEC, and then to San Diego, when he joined Qualcomm in 1995.

In May, Amon traveled to Saudi Arabia and the United Arab Emirates with Trump on the president's first major international trip of his second term. While there, Amon announced Qualcomm will open an engineering center in Abu Dhabi to develop the Middle East's artificial intelligence and data processing infrastructure.

Amon told Serwer he felt a synergy with the region, which is trying to develop its industries outside of energy. "There are similarities in how they are thinking about their future and I am thinking about the future of Qualcomm," he said. "It is about growth and diversifying."

Amon is focused on entering more markets. Yet, Qualcomm's stock has fallen more than 20% in the past year.

"We are trading at a discount because investors are not yet looking at those [new] markets," Amon said.

Investors should look at the bigger growth picture. "Does this company have assets that are required for the future of the semiconductor industry, including AI? I think we are proving we do."

The company had more U.S. patent applications last year than any other company, Amon said, and it recorded its highest ever revenue in the first quarter of 2025.

"I think investors are going to get there," he said.

Write to Emily Russell at emily.russell@barrons.com

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July 19, 2025 01:00 ET (05:00 GMT)

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