After positioning itself to enter the AI PC chips market, investors have been disappointed and felt that it is hard for Qualcomm to make an entry and therefore quickly brush it off and downplay their ambitions to diversify beyond Apple and Mobile chips.

As Broadcom found a new ally with Apple, Qualcomm found itself on the opposite camp with Microsoft (OpenAI). With Apple servicing their contract well into 2027, we think that based on Qualcomm past successes and current strong earnings, it is too early to dismiss them.

On the contrary, it is a good time for them to reduce reliance on Apple especially when 3 companies (ARM, Broadcom and Qualcomm) are vying for its attention and market share, and they have 3 years to execute and evaluate their plans.

Investors would have to reconsider that it might be good for Qualcomm to diversify now than later and accept the realities of leaving the comfort of Apple’s revenues. It would be problematic if Qualcomm’s success is solely defined by Apple.

Likewise for NVIDIA, they don’t directly reveal the revenue coming from each customer even though we know the Big Tech are loading up on their chips. We don’t see the overreliance of one customer affecting their growth and development. Even when SMCI is facing scrutiny, NVIDIA remains unscathed.

Maybe it is time to ponder that the reduce reliance on Apple's demands means stronger and more stable growth for Qualcomm in the coming years?