Qualcomm isn't a household name, but you're using its tech to read this story. Right now there's a good chance you have Qualcomm hardware in your pocket. The San Diego company develops the processors, radio transceivers, and IP that let your smartphone, laptop, TV and modem connect to the Web. And Qualcomm's tech is about to enter millions of new products as new 5G technology makes every device a connected device.

Business is booming. Qualcomm's shares are up some 70% over the last year, trouncing the S&P's blistering 40% rise and the growth-heavy NASDAQ's near 50% surge. Today its market cap tops $150 billion. On July 1, the high-flying hardware maker gets a new CEO—company veteran Cristiano Amon, Qualcomm's current president and CEO-elect. He takes the reins from CEO Steve Mollenkopf, who's retiring after 24 years at the tech company. Investors expect a lot.

"The biggest thing we must do is execute on 5G and mobile. Number two is to diversify into the IoT and automotive markets," says Amon, who was raised and educated in Brazil. "And third is creating new products and new technologies as computers and mobile devices merge into one."

Amon started at Qualcomm nearly two decades ago as an engineer and currently runs product and partnerships. He's been preparing himself to take on the CEO job, too. "I must make sure I stay close to our core competencies, know what the company can be, know what I don't know, and surround myself with people who can do a better job than me,” says Amon. "I've been lucky to have a network of mentors and CEOs who have been in similar situations."

That includes Microsoft boss Satya Nadella. "The relationship between our companies is fascinating because we always want more from them, and they always want more from us—it's about never being satisfied and pushing each other forward,” says Nadella. "Cristiano is a great guy with a lot of energy and a sharp view of the future." 

I must make sure I stay close to our core competencies, know what the company can be, know what I don't know, and surround myself with people who can do a better job than me.

Similar to Amon, Nadella ran a major division inside his own company before taking over for long-time Microsoft CEO Steve Balmer. "Steve told me to be comfortable in my shoes. I was successful before, and that’s why I was in the CEO role," says Nadella. "I've also learned you have to question and answer for yourself why your company exists, its vision and purpose, and not just parrot something that's been said forever. If you don't get it right in your own words and with own emotion, it will be hard to believe."

Amon takes over at a critical time in Qualcomm's history. In 2015, activist investor Jana Partners tried to break up the business. Then, rival Broadcom attempted a hostile takeover in 2017. Qualcomm escaped both. 

Shortly after, it entered legal battles with two formidable foes—Apple and the US Government. Apple sued Qualcomm over patents. The case was settled in April 2019, with Apple paying an undisclosed sum and agreeing to a six-year deal to use Qualcomm tech in its iPhones. Then the Federal Trade Commission accused Qualcomm of anti-competitive practices in how it licensed its tech—the court ruled in Qualcomm's favor in March 2020. "It was the biggest set of crises the company ever faced," Amon says. "We continued to innovate through it all, but now we have all the extra bandwidth to double down on research and development."

While its business is humming, Qualcomm's fate lies in R&D. "Anyone in the tech sector can get crushed by competition. It's an unforgiving industry. If you miss a big trend or if someone does a better job, you get wiped out," says Microsoft's Nadella. "There is no such thing as a lasting franchise." 

Amon is wagering Qualcomm's future on 5G. The new networking technology promises to give billions of devices massive cloud computing power the same way 4G and Wifi connected computers, phones and homes to the Web. 

In a few years, everything from appliances, industrial machines, cameras, robots and cars could have the power of supercomputers and AI—without the expensive and bulky hardware. "5G will give every device unlimited storage and computing power," says Amon. "It will be the next electricity—its use case is everything."

Anyone in the tech sector can get crushed by competition. It's an unforgiving industry. If you miss a big trend or if someone does a better job, you get wiped out.

Millions of new devices will need Qualcomm's chips, antennas, and extensive IP (the company receives royalties even if its hardware isn't in the actual gadget). And with Chinese tech giant Huawei barred in most markets outside of China, Qualcomm is in more demand than ever. "A few years ago, smartphones were considered a mature market with single-digit growth," Amon says. "But now the market could be worth up to $10 billion as the 200 million units that Huawei once shipped go to us and other hardware companies."

Qualcomm’s 5G ambition extends well beyond the simple smartphone. “We are now working together to accelerate development of advanced 21st century defense technologies,” says Lockheed Martin CEO and Chairman Jim Taiclet. “Projects like our 5G.MIL system will seamlessly and securely connect multiple platforms, such as the F-35 stealth fighter jet, into an overall network architecture.”

Fighter jets aside, Amon is betting Qualcomm has a big future in cars. He's predicting that cloud computing will give vehicles artificial intelligence, unlimited data, upgradeable services, and latent-free media like video, TV and gaming. "Auto companies could become the next cable operators and make more money from selling digital services than they did selling you the actual car." 

He thinks Tesla has left legacy automakers in the dust and that competitors need Qualcomm's hardware to get back in the race. "Tesla has turned cars into computers on wheels," says Amon. "We can be the technology partner for all the other car companies. If you get Qualcomm tech, you can make a Tesla." Of course, Mr. Musk might beg to differ.