Qualcomm’s betting on AI data centers to offset smartphone sales sink
A new growth target
Qualcomm is pursuing AI data center business through partnerships with companies including Amazon and Meta, announced earlier this year. The company said it expects this part of its business to grow quickly.
It forecast about $650 million in data center revenue for the first quarter of 2027. Its projections climb to $5 billion by the end of 2027 and $15 billion by 2029.
A significant share ahead
Qualcomm reported total revenue of $10.4 billion for 2026. Against that figure, the projected data center business would represent a substantial portion of its revenue.
Room for competitors
AMD has set a more aggressive long-term expectation, saying data centers could eventually generate more than 80 percent of its revenue. Qualcomm's target is smaller, but both companies are positioning themselves to serve AI data center demand. The outlook suggests the market could offer opportunities for multiple companies as demand grows.
Key points
- Qualcomm expects data center revenue to reach $15 billion by 2029.
- The company projects $650 million in data center revenue for the first quarter of 2027.
- Qualcomm expects data centers to eventually make up around 30 percent of its business.
- Smartphone sales are down around 20 percent compared with 2025.