THE CRUNCH
Qualcomm expects data centre chips to eventually account for around 30% of its business, the company said during its Q4 2026 earnings call. The pivot comes as smartphone sales sink by roughly 20% compared with 2025, pushing the chipmaker to look elsewhere for growth.
The company laid out plans to make a splash in the AI data centre business, building on partnerships with companies including Amazon and Meta announced earlier this year. It forecasts around $650 million in data centre revenue during the first quarter of 2027, rising to $5 billion by the end of 2027 and $15 billion by 2029.
For scale, Qualcomm's total revenue for 2026 was $10.4 billion, so the 30% target would represent a significant share of its earnings.