Qualcomm raised its non-handset chip revenue forecast to $40 billion by 2029, nearly doubling its previous $22 billion projection. The chipmaker expects data center sales alone to reach $15 billion within the same timeframe.
Qualcomm's aggressive forecast signals a major strategic shift as the company pivots away from its traditional smartphone chip business. The chip designer now targets $15 billion in data center revenue by 2029, representing a significant expansion into enterprise infrastructure markets.
The company's total non-handset chip revenue guidance jumped to $40 billion from its previous $22 billion estimate—an 82% increase. This substantial uplift reflects Qualcomm's confidence in its ability to capture growing demand for AI and cloud computing processors.
Data center chips represent the most dramatic growth component of this forecast. The sector has emerged as a crucial battleground for chip designers seeking to diversify beyond consumer devices. Major competitors including AMD and Intel have already invested heavily in data center capabilities, and Qualcomm's aggressive targets indicate it intends to become a serious contender.
The announcement drove Qualcomm's stock price up more than 13% in after-hours trading, signaling investor enthusiasm for the company's growth prospects. Analysts have pointed to strong tailwinds in AI infrastructure and cloud computing as key drivers supporting these projections.
The forecast also encompasses other non-handset segments beyond data center, though Qualcomm did not break down specific revenue targets for these categories. The company's diversification strategy addresses long-standing concerns about its dependence on smartphone markets, which have matured in developed regions.
Qualcomm's projections assume successful product launches and market adoption of its data center processors. The company will need to compete effectively against established players and emerging competitors to achieve these targets. Execution on product development and securing major customer wins will prove critical to validating these ambitious forecasts.
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