Home / Business and Economy / Qualcomm Bets Big on AI Data Centers
Qualcomm Bets Big on AI Data Centers
5 Nov
Summary
- Qualcomm targets data centers for significant future revenue growth.
- Company projects $15 billion in data center revenue by 2029.
- Data centers expected to eventually form 30% of Qualcomm's business.
Facing a significant downturn in smartphone sales, Qualcomm is strategically pivoting towards the AI data center sector to bolster its financial performance. The company announced its ambitious plans during its Q4 2026 earnings call, highlighting collaborations with tech giants like Amazon and Meta.
Qualcomm anticipates robust growth in this new market, forecasting data center revenue to reach $650 million in the first quarter of 2027. Projections indicate a substantial increase to $5 billion by the end of 2027, escalating to an impressive $15 billion by 2029. This expansion means data centers are expected to account for approximately 30% of Qualcomm's total business in the long term.
While less aggressive than competitors like AMD, which aims for over 80% data center revenue, Qualcomm's forecast suggests ample opportunities and significant financial potential within the AI chip market. This move underscores the increasing importance of data centers in the evolving tech landscape.
