Qualcomm Reaffirms Its Position as a Major AI Player by Doubling Growth Targets

Key Points

• Qualcomm has raised its fiscal 2029 non-handset revenue target to approximately $40 billion, up from $22 billion.

• The company aims for more than $15 billion in data center revenue by the same year.

• Meta Platforms signed a multi-year deal to utilize Qualcomm’s new data center processor, starting production in late 2028.

Qualcomm (NASDAQ: QCOM) announced significant revisions to its revenue targets during its investor day on Wednesday. The company has nearly doubled its target for non-handset revenue by fiscal 2029 to around $40 billion and highlighted a goal of over $15 billion in data center revenue, signaling a major push beyond its core smartphone chip business.

Following these announcements, Qualcomm’s shares surged by as much as 15%. The new strategy includes the introduction of the Dragonfly C1000 server processor, aimed at enhancing its footprint in the competitive data center market, currently dominated by Nvidia.

Qualcomm is also seeing growth in its automotive sector, with a 38% year-over-year increase in automotive revenue, reaching $1.3 billion. This growth is backed by a design-win pipeline estimated at about $65 billion, further solidifying the company’s diversification strategy.