**Qualcomm's Ambitious Diversification Plans Fail to Convince Investors**

Qualcomm's stock saw a significant drop of 7% following its Investor Day presentation, where the company set forth an ambitious blueprint to diversify beyond the smartphone market. CEO Cristiano Amon outlined a vision for Qualcomm to capture a $900 billion market by 2030 by branching out into automotive, IoT, and other connected tech segments. The detailed breakdown included expectations of $8 billion in automotive revenue and $14 billion from IoT by 2029.

Despite the bold strategy, investors were left skeptical. Concerns were raised over Qualcomm's ability to achieve these targets amidst a backdrop of slowing smartphone sales and heavy dependence on the Chinese market, which accounts for nearly half of its revenue. Analysts echoed these concerns with Deutsche Bank noting the diversification strategy but also cautioning about potential risks, such as Apple reducing its use of Qualcomm chips.

Barclays was particularly doubtful about Qualcomm's IoT growth projections, deeming them ambitious given the company's recent performance. Additionally, Qualcomm's plans for the PC and XR headset markets, anticipated to bring in $4 billion and $2 billion respectively by 2029, were met with skepticism.

The core concern among investors is whether these new markets can grow rapidly enough to counteract the challenges in Qualcomm's primary handset business. This segment faces significant competition and geopolitical risks, further complicating the outlook.

CEO Amon remains optimistic, pointing to Qualcomm's advancements in generative AI, edge computing, and next-generation automotive technology. Some analysts share this optimism, highlighting Qualcomm's past resilience in difficult markets. Bernstein analysts specifically noted that Qualcomm has a history of weathering tough conditions and may succeed if its diversification efforts come to fruition.

For the time being, however, Wall Street is adopting a wait-and-see approach, indicating a need for measurable progress before regaining confidence in Qualcomm's ambitious plans.