Qualcomm expects data center chips to eventually account for 30% of its total business. The company forecasts $650 million in data center revenue for the first quarter of 2027. It plans to enter the AI data center market through partnerships with Amazon and Meta.
Data center revenue is projected to reach $5 billion by the end of 2027. Qualcomm expects revenue to grow to $15 billion by 2029. The company’s total revenue for 2026 was $10.4 billion. Smartphone sales have dropped by approximately 20% compared to 2025.
This shift marks a significant pivot for Qualcomm as it seeks to offset declining smartphone sales. The partnerships with Amazon and Meta will be crucial for developing AI chips for data centers. Developers and hardware buyers should watch these partnerships closely to see how the new chips perform in real-world applications.
