Qualcomm Targets Data Center Growth Amid Declining Smartphone Sales
Qualcomm is pivoting its strategic focus toward the AI data center market to offset a significant 20% decline in smartphone sales compared to 2025. During its Q4 2026 earnings call, the company outlined an aggressive growth trajectory for its data center segment, supported by existing partnerships with major tech players like Amazon and Meta. The company forecasts data center revenue to reach $650 million in Q1 2027, scaling rapidly to $5 billion by the end of 2027 and potentially hitting $15 billion by 2029. If these targets are met, the data center division would eventually represent approximately 30% of Qualcomm's total business, providing a critical new revenue stream as its traditional mobile dominance faces headwinds.
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Topics: AI Chips Data Center Revenue Forecast Smartphone Market Decline
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Part of the story Qualcomm Faces Short-Term Headwinds Amid Declining Smartphone Sales but Eyes Long-Term Growth via Automotive and AI (4 articles)