Qualcomm is focusing on data centres for AI; its share price soars on the stock market
The company expects to achieve annual turnover of $40 billion from its non-smartphone businesses by 2029
It is perhaps one of the companies that has remained most under the radar since the AI boom took off. Yet its processors continue to play a central role in the mobile world, forming the heart of most smartphones. This time, however, the focus is entirely on AI – and, more specifically, on the data centre market.
We are talking about Qualcomm, the Californian giant that is aiming for annual revenue in excess of 15 billion dollars by the 2029 financial year. The target, announced during Investor Day in New York, was well received by investors, with the share price opening the session up 10 per cent.
The company also plans to achieve annual turnover of 40 billion dollars from non-smartphone businesses by 2029, doubling the target set two years ago. Of this figure, around 10 billion is expected to come from the automotive sector, whilst data centres represent the new area of expansion on which the group intends to focus a significant proportion of its investment.
For Qualcomm, this marks a significant shift in strategy. The company, historically associated with smartphone processors (the famous Snapdragon series), is now aiming to gain a foothold in the most lucrative segment of the semiconductor industry: artificial intelligence infrastructure, a sector currently dominated by companies such as Nvidia.
According to Chief Financial Officer Akash Palkhiwala, revenue from data centres is set to reach $5 billion by the end of the next financial year. This growth will also be driven by the recently announced agreement with Meta, which will use the new Dragonfly C1000 processor (a chip due to be available from 2028) and subsequent generations in its data centres.
