Qualcomm sets $15B data center target by 2029, stock surges
Qualcomm just announced it's diving deeper into data center chips, aiming for $15 billion in sales from this segment by 2029.
The news sent Qualcomm's stock up over 12% after hours.
CFO Akash Palkhiwala shared that they're expecting $5 billion in revenue from data centers as soon as fiscal 2027.
Qualcomm partners with Microsoft and Meta
Qualcomm is teaming up with Microsoft, Meta, and two major unnamed customers to boost its presence in the AI chip space, where rivals like NVIDIA and Amazon already play big.
Meta will use Qualcomm's Dragonfly C1000 CPU for its AI centers, while Microsoft is adopting chips with cost-efficient memory technology.
With these moves, Qualcomm expects custom chip revenue to start rolling in late 2026 and forecasts total non-smartphone chip sales hitting $40 billion by 2029.