QCOM Expands Into AI Video Intelligence Market: Will it Drive Growth?

Qualcomm Incorporated QCOM recently announced that it has formed a partnership with India’s leading video security company, CP PLUS. The collaboration aims to integrate advanced on-device AI and edge-processing capabilities of Qualcomm Dragonwing processors with the comprehensive product ecosystem and distribution network of CP PLUS.

Per a report from 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 catching up fast. With portfolio expansion and strategic collaborations with other industry leaders, Qualcomm is aiming to capitalize on this emerging market trend.

Advanced video security and edge AI provide the required scale, resilience and efficiency for the transformation of industrial and public infrastructure systems. Qualcomm boasts future-ready, intelligent video capabilities. Its edge AI enhances the security of sensitive data by reducing exposure to external networks. Its air-gapped architecture minimizes cybersecurity threats, which is critical for industrial and public infrastructure. The company will also provide the Qualcomm Insight Platform to deliver on-site video intelligence with reduced latency, minimizing server dependency. It will also provide real-time alerts and notifications with actionable insights.

The smartphone market has been a major revenue driver for Qualcomm. It is facing aggressive competition in this vertical. Several of its customers, such as Apple and Samsung, are moving to in-house chip development. It has been facing challenges from low-cost chip manufacturers like MediaTek and Rockchip as well. Amid this backdrop, Qualcomm is taking several steps to broaden its portfolio offerings and venture into emerging high-growth markets such as AI video intelligence. This bodes well for long-term growth.

How Are Competitors Faring?

NVIDIA NVDA has positioned itself as a major player in AI-powered video analytics. NVIDIA GPUs expedite real-time video analytics, ensuring swift detection and tracking in surveillance systems. NVIDIA Metropolis is also set to gain market traction. The vision AI application platform facilitates the development and deployment of AI agents that can have a wide range of use cases, such as improving efficiency and safety in smart cities, manufacturing, retail and logistics.

Motorola MSI remains a prominent provider of AI-enabled video intelligence solutions worldwide. The Motorola Avigilon cloud-based video and access control solutions offer innovative features such as appearance search, facial recognition, unusual activity detection and license plate recognition. Backed by such leading-edge capabilities, Motorola is gaining solid market traction across several public safety agencies worldwide. Motorola expects to record strong demand across video security and services, land mobile radio products and related software while benefiting from a solid foundation.

QCOM’s Price Performance, Valuation and Estimates

Qualcomm shares have gained 14.1% over the past year compared with the industry’s growth of 54%.

Going by the price/earnings ratio, the company's shares currently trade at 14.81 forward earnings, lower than 41.02 for the industry.

Earnings estimates for 2025 and 2026 have improved over the past 60 days.

Qualcomm stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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