Qualcomm is betting big on data centers as smartphone sales sink
· Source: The Verge AI
Qualcomm, the long‑time maker of mobile chips, is shifting its focus to data centers as smartphone sales have fallen roughly 20 % from 2025 levels. In its Q4 2026 earnings presentation, the company explained that it aims to expand its footprint in the AI market through partnerships with major cloud infrastructure operators, including Amazon and Meta, which have already signed agreements to deploy multiple generations of Qualcomm processors in their facilities. Qualcomm projects generating about $650 million in data‑center revenue in the first quarter of 2027, with expectations of reaching $5 billion by the end of that year and $15 billion by 2029. These figures would represent a substantial portion of Qualcomm’s total revenue, which stood at $10.4 billion in 2026.
This strategic pivot is significant because it shows how a company traditionally focused on mobile hardware is diversifying its business model to tap the rapid growth of cloud AI, potentially affecting industry competitiveness and the availability of processing solutions for both enterprise and consumer applications.
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