How Qualcomm is evolving to grab a piece of the AI data center explosion.
Yahoo Finance ·
How Qualcomm is evolving to grab a piece of the AI data center explosion. Daniel Howley · Technology Editor Thu, June 25, 2026 at 4:03 PM EDT 2 min read QCOM AAPL Qualcomm ( QCOM ) made its mark as a smartphone chip designer. But smartphone growth has slowed, and after losing Apple ( AAPL ) as a key customer, the company began searching for a way to move beyond the handset market. At its investor day on Wednesday, Qualcomm demonstrated how it plans to do that, revealing a line of data center components and servers and announcing that it is nearly doubling its fiscal 2029 non-handset revenue projections to $40 billion. The company initially began its push to reduce its dependence on smartphone revenue by turning toward edge devices, products including laptops, smart glasses, and self-driving vehicle technologies. Now it's looking beyond that to grab a piece of the AI data center explosion. "We used to be a smartphone company, now we're an edge device company, and the next phase of Qualcomm is getting into rack scale infrastructure and this is the proof that we're doing that in real time," Qualcomm CFO Akash Palkiwala told Yahoo Finance on the sidelines of the company's investor day event in New York City. Qualcomm is offering up its own AI accelerator, new memory products, a new CPU, and networking capabilities, as well as full rack servers to create what it calls a turn-key solution for companies looking for alternatives to Nvidia's platforms and services. And if the strategy works, it could pay off handsomely for Qualcomm. "Across these four, we gave a revenue target of $5 billion in fiscal 207, which starts in three months, and a revenue target of $15 billion in fiscal 2029," Palkiwala said. So far, investors are on board. Qualcomm stock jumped 13% after Palkiwala announced the company's data center revenue projections and rose 7% through midday Thursday. Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley . Read the latest financial and business news from Yahoo Finance
AI 시장 분석
Qualcomm announced it is expanding its business scope from smartphone-centric to edge devices and now to rack-scale infrastructure for AI data centers. At an investor event it unveiled AI accelerators, new memory, CPUs, networking capabilities and full rack servers as turnkey solutions, and raised its non-handset revenue target nearly twofold to $40 billion( fiscal 2029). The company also set near- and mid-term revenue targets of $5 billion( fiscal 207) and $15 billion( fiscal 2029), underscoring its intent to commercialize the data center business. If successful, this strategy could provide an alternative to the Nvidia-centric ecosystem, broadening hardware choices and triggering repricing and margin realignment.
상승 영향
- AI data centers (accelerators/server chi — Qualcomm's launches of AI accelerators, CPUs and server products reduce dependence on Nvidia, expand hardware choices for data centers, and can drive market share gains and intensified technological competition.
- Semiconductors — Expansion of server CPUs, accelerators and IP licensing will increase demand for foundry and chip-design services, promoting revenue diversification and a shift toward higher-value segments in the semiconductor industry.
- Memory & storage — Announcement of new memory products will stimulate demand for low-latency, high-bandwidth memory, benefiting DRAM, NVMe and advanced storage suppliers through increased orders.
- Networking & data center infrastructure — Providing networking functions and turnkey rack servers will drive replacement and upgrade demand for switches, optical communications and data center infrastructure equipment, creating positive spillovers to related vendors.
- Edge devices (laptops/AR/autonomous driv — Qualcomm's edge experience combined with server integration strengthens edge-cloud integrated solutions, supporting increased demand for chips in laptops, AR and autonomous driving applications.
하락 영향
- GPUs/AI accelerators (Nvidia) — Qualcomm's full-scale entry risks eroding Nvidia's data center share and intensifying price competition and margin pressure, potentially harming profitability.
- Smartphones/mobile chipsets — Reduced handset dependence and mentions of losing Apple(AAPL) suggest slower smartphone market growth and weaker demand outlook for mobile chipsets.
- Traditional server OEMs (Dell/HPE etc.) — Qualcomm's supply of turnkey rack servers will intensify competition with incumbent server OEMs, accelerating price and margin competition and increasing pressure on their market shares.
AI가 생성한 분석으로 투자 자문이 아닙니다.
DYAX Investor Sentiment
Bullish (Long) 44% · Bearish (Short) 56%
342 participants
Related News
- Micron's Blowout Earnings Could Be Great News for Nvidia Investors
- RTX secures $1.11B contract modification for AIM-9X missile production.& delivery
- Balfour Beatty among winners of $8B U.S. Defense infrastructure multiple-award contract
- General Dynamics's unit wins $209.3M contract modification for Abrams engineering work
- OpenAI Mulls Delaying IPO Until 2027: Report
- Stock Market Today, June 25: Microsoft Falls as AI Spending Concerns Pressure Cloud Margin Outlook