**Qualcomm in the AI Chip Market: Key Developments and Projections**
Qualcomm has announced significant advancements in its artificial intelligence (AI) chip capabilities, particularly through partnerships with Meta Platforms and Amazon. In June, Qualcomm secured a deal to supply its Dragonfly data center CPUs to Meta, with plans for future generations of server CPUs, while a recent collaboration with Amazon aims to produce custom AI chips and optical connectivity components.
The company projects a substantial increase in data center revenue, expecting it to rise from $5 billion in fiscal 2027 to $15 billion by fiscal 2029. This growth is critical, as Qualcomm’s revenue is currently forecasted to decline by 3% to $43 billion in fiscal 2026. However, analyst estimates predict a rebound, with potential earnings-per-share growth reaching 25% in fiscal 2028, which could result in a stock price surge up to $390, representing a 124% increase from its current valuation.
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