BlackBerry Ltd. (NYSE:BB) shares are rising Tuesday, a day after its CEO pitched AI-driven robotics as a big new source of growth on CNBC. The company also adds a deal-making lawyer to its board. Here's what you should know.
BlackBerry Stock Rises On Robotics Growth Outlook
Speaking on CNBC on Monday, CEO John Giamatteo said robots driven by artificial intelligence could become a big new source of growth for BlackBerry. The stock seemingly continued to climb again Tuesday.
BlackBerry is no longer a phone maker. In cars, its QNX software quietly handles safety-critical jobs such as braking, along with partly automated driving features. Upward of 275 million vehicles carry it. Giamatteo wants QNX used well beyond cars. He pointed to supply chains, medical equipment, governments and robots, and said "that's the new BlackBerry."
What Physical AI Means for BlackBerry
Generative AI creates words and pictures. Physical AI helps machines act in the physical world. BlackBerry's pitch is that the safety-focused software it honed in cars can keep robots working reliably. Giamatteo says robotics already ranks among QNX's fastest-growing lines.
Order commitments back that up. QNX's royalty backlog, the revenue BlackBerry expects from existing deals, has climbed over $250 million in two quarters to above $1.2 billion. Giamatteo credits three trends: carmakers moving to stronger computers, a broader software menu and early physical AI demand.
Nvidia adds to the momentum. Warehouse robots, autonomous forklifts and pallet-moving vehicles are early targets, Giamatteo said, thanks to Nvidia, which now builds its Halos safety technology on QNX.
BlackBerry Adds David Chaikof to Board
BlackBerry's board has a new member: David Chaikof, announced Tuesday. Chaikof pairs a law career with investing experience. He built his legal practice at Torys LLP, where he led the New York office and advised on deals, governance and capital-markets work. For over ten years he also acted as BlackBerry's outside counsel. He now advises Osmington Inc., a private investment firm in Canada.
With Chaikof aboard, the board gains a ninth director, and eight of the nine are independent. Board Chair Dick Lynch said Chaikof's years as a trusted adviser and his international deal experience will help the company.
BB Shares Are Climbing
BB Price Action: BlackBerry shares were up 4.24% at $9.58 at the time of publication on Tuesday, according to Benzinga Pro.