Qualcomm CEO Ammon: the public realizes the importance of chips, and the chip industry is still promising.

The shares of chip companies have performed poorly in the past few months, according to news in the morning of October 20, Beijing time. A recent report by Deutsche Bank predicts that this earnings season is likely to show more signs of weakness.

However, Qualcomm chief executive Cristiano Cristiano Amon remains optimistic about the future of the chip industry, especially the long-term future. He believes that there has been a shortage of chips since the beginning of COVID-19 's epidemic, prompting people outside the industry to realize the importance of chips. Qualcomm currently provides chips for a variety of devices, including mobile phones, laptops, smart cars and virtual reality devices.

"when focusing on economic growth, people realize that chips are an important part of the digital economy," Ammon said at a high-ventilation CEO summit on Thursday local time. "with regard to the digital transformation of enterprises, chips are necessary for companies that want to improve efficiency. Because you need to connect, chips are becoming extremely important." In other words, "the story about the chip is still as good as ever."

At present, stock market volatility, rising inflation and the Fed's hawkish stance pose a challenge not only to Qualcomm, but also to all technology companies. As of Wednesday, the Nasdaq 100 index has fallen about 32% this year. Qualcomm beat analysts' expectations in revenue and profit last quarter and will report fourth-quarter results in early November. Qualcomm shares are down about 40% so far this year.

"as we said in the earnings report, we have seen some slowdown in growth in the short term for macroeconomic reasons," Ammon said. "

After Ammon became chief executive in 2021, Qualcomm launched a business diversification strategy. In the short term, this strategy remains at the heart of Qualcomm. For example, Li Qun, global head of High ventilation Investment, said that High ventilation Investment is focused on building Qualcomm's ecology in forward-looking areas such as virtual reality through investment.

Now is a better time to invest than expected, he says. "if you look at the last cycle, a lot of big companies actually started and developed in difficult times. From the investor's point of view, we have disposable capital. I think this is a better time to invest than the same period last year. I don't think the timing is bad."