Qualcomm anticipates that business derived from data center chips will eventually constitute 30% of its total operations.
Facing a decline in smartphone sales of approximately 20% compared to 2025, the company is pivoting toward the data center sector to stabilize its financial performance. During its fourth-quarter 2026 earnings call, Qualcomm outlined its strategy to enter the AI data center market through strategic partnerships with major firms like Amazon and Meta, which were announced earlier this year. The company projects rapid growth in this sector, forecasting revenue of roughly $650 million during the first quarter of 2027. This figure is expected to climb to $5 billion by the end of 2027 and reach $15 billion by 2029.
Given that Qualcomm's total revenue for 2026 stood at $10.4 billion, achieving this percentage would represent a substantial portion of its earnings. The company confirmed during the earnings call that it views data centers as a critical component of its future revenue mix.
While this projection is more conservative than AMD's forecast of over 80% of revenue eventually coming from data centers, it underscores the immense market potential and the availability of capital within the AI industry.
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