Qualcomm Pivots to Data Centers as Smartphone Market Slumps

The company projects rapid expansion in this segment, forecasting $650 million in data center revenue for the first quarter of 2027. This figure is expected to accelerate to $5 billion by year-end, eventually hitting $15 billion by 2029. Given that Qualcomm reported $10.4 billion in total revenue for 2026, these projections signal a fundamental transformation in the firm’s business model. Executives confirmed that data centers are slated to represent roughly 30 percent of the company’s total operations in the coming years.

While this trajectory marks a departure from its core mobile focus, it remains more conservative than competitors like AMD, which anticipates data centers will eventually generate over 80 percent of its revenue. Qualcomm’s move underscores the intensifying scramble to secure AI infrastructure spending, where demand continues to outpace supply across the industry.