Qualcomm is betting big on data centers as smartphone sales sink

With smartphone sales dropping about 20% compared to 2025, Qualcomm is shifting its focus to data centers to boost its bottom line. During its Q4 2026 earnings call, the company outlined plans to make a significant impact in the AI data center market through partnerships with companies like Amazon and Meta. Qualcomm forecasts data center revenue of around $650 million in Q1 2027, growing to $5 billion by end of 2027 and $15 billion by 2029. Given that its total 2026 revenue was $10.4 billion, this would represent a substantial share of its earnings. The company confirmed it expects data centers to eventually account for about 30% of its business, though this is less ambitious than AMD's target of over 80%.

(Source：The Verge)