Qualcomm’s Growth in Data Center Chips
Qualcomm is poised to significantly expand its data center chip business, projecting revenue growth from negligible figures last year to $15 billion by 2029. This growth follows three recent major deals with hyperscalers.
As of April, Qualcomm has secured contracts worth over $1 billion with two hyperscalers and will begin selling next-generation CPUs designed for AI agents to Meta in the second half of 2028. The company’s overall addressable market for data center CPU solutions exceeds $1 trillion, highlighting substantial growth potential compared to Intel’s $5.1 billion in sales in the last quarter.
Qualcomm anticipates earnings per share to rise to over $18 by 2029, indicating an annual growth rate of 18%. Despite this outlook, Qualcomm’s stock currently trades for less than 18 times its future earnings expectations, presenting a potentially appealing investment opportunity.
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