Qualcomm expects data center chips to account for about 30% of its business
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On its Q4 2026 earnings call, Qualcomm projected that data center chips will eventually account for about 30% of its business. The company also forecast that revenue from this business will grow from about $650 million in Q1 2027 to $5 billion by the end of 2027 and $15 billion in 2029. This pivot comes against the backdrop of a contracting smartphone business: smartphone sales in 2026 fell about 20% compared with 2025, and Qualcomm's total revenue for 2026 was $10.4 billion. Qualcomm is entering the AI data center market through partnerships with companies such as Amazon and Meta.
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- The Verge · AIQualcomm is betting big on data centers as smartphone sales sink
With smartphone sales down about 20 percent versus 2025, Qualcomm said on its Q4 2026 earnings call that it expects data center chips to eventually account for around 30 percent of its business, aided by partnerships with Amazon and Meta announced earlier this year. The company forecasts roughly $650 million in data center revenue in Q1 2027, rising to $5 billion by the end of 2027 and $15 billion by 2029, against total 2026 revenue of $10.4 billion.
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