BlackBerry - $BB
BlackBerry (BB) is viewed as an attractive "physical AI" software play rather than a legacy smartphone brand. At a market cap of roughly $6 billion, its bullish case centers on the rapid growth and massive backlog of its QNX operating system, significant government contract wins in cybersecurity, and a recent transition into consistent profitability
Here are the specific factors that make BlackBerry a potentially good buy right now:
- Dominance in Physical AI & Automotive: BlackBerry’s safety-certified QNX platform is embedded in over 250 million vehicles globally. Wall Street views QNX as a crucial infrastructure layer for "physical AI," extending beyond connected cars into robotics, medical devices, and industrial automation.
- The automotive and embedded software division boasts a royalty backlog of roughly $950 million, locking in predictable, high-margin, recurring revenue
- Management recently highlighted "Alloy Kore," a new automotive software platform that could multiply the revenue BlackBerry generates per vehicle by "hundreds of percents
- Sticky Cybersecurity & Secure Communications: The cybersecurity and secure communications segment has seen revenue growth, buoyed by multi-year sovereign architecture deals, such as massive expansions with Shared Services Canada, the IRS, and Germany's Bundesbank
- Shift to Profitability: After a long turnaround, BlackBerry is entering a growth-oriented phase. The company recently posted an earnings beat, showcasing five consecutive quarters of positive GAAP net income and marking its first cash-positive fiscal first quarter in nine years.
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BlackBerry - $BB
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