Qualcomm Shares Gain On First IoT Product Launch With STMicroelectronics: Retail Waits On Gains

Qualcomm’s shares rose over 1.7% in early Wednesday trading after the company unveiled the first product from its strategic collaboration with STMicroelectronics, signaling a step forward in its wireless IoT solutions portfolio. 

Meanwhile, U.S.-listed shares of STMicroelectronics shares remained flat.

The newly launched ST67W611M1 module combines STMicroelectronics' STM32 microcontroller with Qualcomm's wireless technologies.

The module has been designed for industrial and consumer IoT applications, featuring support for Wi-Fi 6, Bluetooth 5.3, and Thread to ensure future-ready connectivity, according to STMicroelectronics. 

The company also highlighted that the module incorporates advanced security measures, including cryptographic accelerators and secure boot functionality, meeting the growing demand for secure IoT systems.

While this module represents the collaboration's first milestone, broader product availability is expected by Q2 2025, giving both companies time to scale their offerings and target key markets.

Qualcomm Sentiment and Message Volume on Dec 11 as of 9:45 a.m. ET | Source: Stocktwits

Retail sentiment around Qualcomm remained ‘bullish’ but message volumes saw an uptick to ‘high’ from ‘normal’ with users hoping the stock would trend higher today after slipping 2.6% in the previous session, as semiconductor stocks were weighed down by Nvidia’s regulatory struggles in China. 

STMicroelectronics Sentiment and Message Volume on Dec 11 as of 9:40 a.m. ET | Source: Stocktwits

Retail sentiment around STMicroelectronics has flipped to ‘bearish’ from ‘bullish’ a month ago. However, there is significantly more chatter around the stock as users on the platform bank on long-term gains from the stock. 

Some anticipate that the stock will start giving back once the revenue for this deal – and other deals like the licensing agreement with Atomera – starts flowing in mid-2025.

The collaboration between Qualcomm and STMicroelectronics, announced in October, focuses on combining Qualcomm’s wireless expertise with STMicroelectronics’ established STM32 microcontroller ecosystem. 

By leveraging each other’s strengths, the companies aim to accelerate innovation and deployment in IoT markets.

Qualcomm reported $1.7 billion in IoT revenue for the fourth quarter, marking a 24% increase from the previous quarter. The company attributed the growth to new product launches and improved inventory levels across channels.

The leading semiconductor player anticipates a total addressable market (TAM) of around $900 billion by 2030 for its IoT solutions. It expects to ship over 50 billion connected edge devices between 2024 and 2030.

The stock has gained over 13% year-to-date. 

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