Qualcomm Targets $15B Data Center Chip Sales by 2029

Qualcomm Forecasts $15 Billion Data Center Chip Sales by 2029 in Pivot Beyond Smartphones 

NEW YORK, United States — June 25, 2026 — Qualcomm Incorporated has set a target of approximately $15 billion in annual data center chip sales by 2029, unveiling the goal at its Investor Day 2026 in New York City as the company moves to reduce its long-standing dependence on the smartphone market and enter the fast-growing Data Center Market. The announcement positions Qualcomm against established players in the AI infrastructure segment and signals intensifying competition for accelerator and processor demand driven by artificial intelligence workloads. 

Main Development 

At the event, Qualcomm management indicated that its data center business is expected to generate revenue in the billions of dollars beginning in 2027, scaling toward the $15 billion target by the end of the decade. The company framed the strategy as a diversification effort intended to broaden its revenue base beyond mobile handsets. 

The move places Qualcomm in a crowded field already populated by entrenched suppliers competing for AI-related infrastructure spending. The forecast underscores how chipmakers are realigning product roadmaps toward server and accelerator demand tied to expanding compute requirements. 

Key Highlights: 

• Qualcomm targets roughly $15 billion in annual data center chip sales by 2029. 

• Data center revenue is projected to reach the billions of dollars starting in 2027. 

• The strategy is designed to reduce Qualcomm's reliance on the smartphone segment. 

• The company enters a competitive market dominated by established AI chip suppliers. 

Analyst Insight: 

According to analysts at Next Move Strategy Consulting, the global Data Center Market was valued at USD 308.46 billion in 2024 and is expected to reach USD 364.59 billion by 2025. Looking ahead, the industry is projected to expand significantly, reaching USD 646.16 billion by 2030, registering a CAGR of 12.13% from 2025 to 2030,supported by accelerating artificial intelligence adoption and rising compute density. NMSC analysts note that semiconductor suppliers expanding into server-grade AI processors are increasingly influencing the market's growth trajectory and competitive structure. 

Industry Outlook: 

Qualcomm's entry is expected to add competitive pressure across the AI data center supply chain as hyperscalers continue to scale capacity. Execution against the 2027 revenue milestone will be a key indicator of whether the company can establish a durable position in the segment. 

Source: Reuters 

Prepared By: Sanyukta Deb

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