Qualcomm is betting big on data centers as smartphone sales sink — SkimNews
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- Smartphone sales fell by around 20% compared with 2025, prompting Qualcomm to focus on data centers to help boost its bottom line.
- Qualcomm used its Q4 2026 earnings call to lay out plans for its AI data-center business, including partnerships with Amazon and Meta announced earlier in the year.
- Qualcomm forecast around $650 million in data-center revenue during the first quarter of 2027.
- Qualcomm anticipated that data-center revenue would reach $5 billion by the end of 2027 and $15 billion by 2029.
- Qualcomm expects data-center chips eventually to account for around 30% of its business and reported $10.4 billion in total revenue for 2026.
- AMD expects data centers eventually to supply more than 80% of its revenue, a higher share than Qualcomm’s roughly 30% target.
Why it matters: Qualcomm’s data-center forecast runs from about $650 million in Q1 2027 to $5 billion by year-end and $15 billion by 2029, with the business eventually accounting for 30% of the chipmaker. Against $10.4 billion in 2026 revenue, that makes AI infrastructure a material new revenue pillar, while Qualcomm’s 30% goal remains below AMD’s stated 80%+ mix.
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