Qualcomm Partners With STMicroelectronics To Boost AI-Powered IoT Connectivity

On Tuesday, STMicroelectronics NV (NYSE:STM) and Qualcomm Inc (NASDAQ:QCOM) subsidiary Qualcomm Technologies International announced a new strategic collaboration for industrial and consumer IoT solutions augmented by edge artificial intelligence.

The two companies proposed integrating Qualcomm Technologies’ leading AI-powered wireless connectivity technologies with the microcontroller (MCU) ecosystem from STMicroelectronics.

Remi El-Ouazzane of STMicroelectronics said: “Wireless connectivity is key to the fast pervasion of edge AI across an ever-growing variety of use cases in enterprise, industrial, and personal applications.”

Also Read: What’s Going On With Chip Stocks Like Nvidia, Taiwan Semi And AMD on Monday?

STMicroelectronics stock plunged over 33% in the last 12 months.

The key supplier to Tesla Inc (NASDAQ:TSLA) and Apple Inc (NASDAQ:AAPL) clocked a 25.3% topline decline in the second quarter due to weakness in the industrial and automotive sectors. At least three Wall Street firms, including Craig-Hallum, TD Cowen, and Bernstein, slashed their price targets on the stock after the dismal print.

Qualcomm stock is up over 48%. It reported third-quarter topline growth of 11%, backed by its handsets and automotive segments. In the third quarter, it bagged over ten new design wins for automotive. JPMorgan analyst Samik Chatterjee flagged growth potential by regaining market share with Samsung Electronics (OTC:SSNLF) and diversification into the automotive and IoT sectors, partially offsetting lost revenue from Apple.

Recently, the U.S. Fed, followed by China, slashed its key rates to spur discretionary spending. Lower interest rates have the potential to drive the industrial and automotive sectors by promoting discretionary spending by the companies.

Price Actions: STM stock is down 3.48% at $28.70 at last check Tuesday. QCOM is down 2.44% at $165.73.

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