Why Is Qualcomm Shifting Toward Data Centers?

Qualcomm is counting on data centers to offset a sharp drop in its core phone business. Smartphone sales have fallen by around 20 percent compared to 2025, and the chipmaker is now pinning much of its future on artificial intelligence infrastructure.

During its fourth-quarter 2026 earnings call, Qualcomm outlined its plans to build a larger presence in the AI data center market. The strategy relies on partnerships with companies like Amazon and Meta, which the company announced earlier this year.

How Much Data Center Revenue Does Qualcomm Expect?

The company expects the data center business to grow fast. Qualcomm forecasts about $650 million in data center revenue for the first quarter of 2027. It anticipates that number will climb to $5 billion by the end of 2027 and reach $15 billion by 2029.

The scale of those targets stands out against the rest of the company. Qualcomm reported total revenue of $10.4 billion for 2026. If data center sales reach $15 billion, they would far exceed the company's entire revenue from last year.

How Does Qualcomm's Data Center Goal Compare With AMD's?

Qualcomm said on the call that it expects data centers to eventually account for around 30 percent of its overall business. That is a more modest goal than the one set by Advanced Micro Devices, or AMD, which says it expects more than 80 percent of its revenue to eventually come from data centers.

The contrast between the two chipmakers points to how much demand analysts and executives believe is available in the AI market. AMD's bet suggests a company willing to reorient almost entirely around data centers, while Qualcomm's target suggests a more gradual shift that keeps other parts of its business in place.

Qualcomm's plan depends on turning partnerships into large, recurring orders over the next few years. The company's near-term forecast of $650 million is a small fraction of the $5 billion it hopes to reach by the end of 2027, so the pace of that growth will be the key measure to watch in the quarters ahead.

Dieser Artikel wurde mit Unterstützung von KI verfasst.
News Factory APP - agentische News für besseres SEO & AEO.