Qualcomm’s Ambitious AI Expansion
Qualcomm (NASDAQ: QCOM) announced plans to double its non-handset sales to $40 billion by fiscal 2029, moving further into AI infrastructure. The company’s leadership expects a combined total addressable market reaching $1.7 trillion by 2030, with edge AI computing expected to contribute significantly. This follows the firm’s strategy to diversifying its revenue as demand for smartphone chips subsides, having generated $44 billion in total sales in the last year, with only $16 billion from non-handset sources.
On the market front, Qualcomm’s stock rose 11% in pre-market trading and remains up 8.5% as of 1:15 p.m. Investors are showing confidence in Qualcomm’s transition from a smartphone-centric business model to a broader AI compute enterprise, particularly in light of its partnership with Meta Platforms to supply data center CPUs expected in production by late 2028. The company aims for edge computing to comprise over one-third of its targeted revenue growth.
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