BB Stock Rises Overnight: BlackBerry CEO Says QNX’s Alloy Kore Expanding Market— 'The Products We Sell Are Pervasive Around You'

• BlackBerry CEO John Giamatteo said growth in connected cars, robotics and physical AI is driving business. 
• QNX’s Alloy Kore platform has expanded beyond automotive software. 
• BlackBerry’s QNX business grew 20% in Q2 and has a record $1.2 billion royalty backlog. 

BlackBerry (BB) stock ticked higher overnight as CEO John Giamatteo highlighted the company’s prospects in automotive software, robotics and physical AI. BlackBerry’s Alloy Kore platform combines its QNX operating system with middleware to expand its addressable market. Giamatteo also cited Nvidia’s adoption of QNX for robotics as a potential growth driver. 

BlackBerry stock edged 0.5% higher overnight Monday after a 3% gain in regular session. Up 142%, the stock is on track for its best year since 2007. 

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BlackBerry QNX Targets A Broader Technology Market

In an interview with Mad Money host Jim Cramer, Giamatteo said BlackBerry technology now operates across domains, gaining from growing demand for connected and autonomous machines.

“The products we sell today can’t be held in the palm of your hand; they are pervasive around you. 275 million cars, robots, governments, medical instrumentation, supply chain- that’s the new BlackBerry, and that’s what is driving all our growth,” said Giamatteo.

“Three drivers that have really pushed on the QNX side of the business: Auto industry and their transition to the high performance compute architecture, which brings the market north direction with our QNX operating system as the next-generation type of performance. Second, we are expanding our market capitalization, our addressable market, with Alloy Kore. Alloy Kore is bringing together the operating system with the middleware, significantly expands our addressable market and finally emerging growth in physical AI and those applications.” 

QNX’s new automotive operating system, Alloy Kore, expands its role beyond providing individual software tools. Its first design win is expected to bring more than $100 million in future royalties, the biggest in QNX’s history. 

BlackBerry’s Strong Margins And Nvidia Partnership 

BlackBerry is reporting momentum in QNX, with Giamatteo highlighting 20% growth and gross margins of 87% in the second quarter. He also pointed to improving cash generation as evidence that the business is building a stronger financial foundation. Last week, QNX reported a record royalty backlog of over $1.2 billion, up 26% from about $950 million in the previous fiscal year. 

BlackBerry's collaboration with Nvidia Corp. (NVDA) is also creating opportunities outside the automotive sector. Giamatteo said the relationship initially focused on vehicles but has expanded.

“Nvidia is a great partner. Started the partnership in the automotive sector.As they've now delved into their Halo safety stack, which is all the technology that's going into the robot stack. They've standardized on QNX  as the platform of choice for that.  That has opened up so many doors,  an incredible pipeline of opportunity. And these are things like AMRs,  automated mobile robots, autonomous forklifts,  skateboards that are driving pallets  to the docking station.  These are all the technologies that we're working with Nvidia.” 

BB Stock: Retail Stance

On Stocktwits, retail sentiment around the stock remained ‘neutral’. 

A user said, “This feels like buying nvidia at 13.50 and Amd at 3 dollars!!!!! Let’s go! Good vibes and send this! Not if but when.” 

Another user said, “People are going to start to figure out that we are in AI stock that never had an AI run.”

BB stock has gained 91% in the past twelve months. 

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