Qualcomm (QCOM) unveiled new financial targets and said its push into new markets could lead to an additional $22 billion in annual revenue by 2029.

The announcement highlights Qualcomm's efforts to expand outside of the smartphone business, which accounted for roughly 75% of its chip business in fiscal 2024. Key areas that Qualcomm CEO Cristiano Amon highlighted during the event included autos and internet of things.

Qualcomm CEO Cristiano Amon sat down with Julie Hyman just after his investor day presentation and explained how the company will meet the new targets in three key areas: PC, virtual reality and industrial. "Those three combined with the rest of IoT and autos are going to drive a diversification of Qualcomm to have, by the end of the decade, mobile is going to be 50% or less," Amon Said.

With this new outlook, the guidance suggests that mobile revenue may be relatively flat over the next year. But Amon said the company is being conservative and sees opportunity coming from artificial intelligence. "We're not factoring in anything about the upgrade cycle driven by AI. So that's an upside to the model," he said.

He highlighted the work Google's Android and Samsung are doing in that space, but also acknowledged the time it takes for development is why the company has a conservative view for mobile revenue.

"The main launches of Samsung Galaxy and Google is all about AI use cases and that could drive an upgrade cycle," Amon said. "I can't really tell you whether it's going to be this year or next year. I can tell you within five years we're all going to be using AI smartphones. And anything that happens faster is going to be an upgrade cycle and that will benefit us tremendously."