Qualcomm targets data centers as smartphone sales decline

Qualcomm is turning to data centers for growth as smartphone sales fall by about 20 percent from 2025 levels. During its Q4 2026 earnings call, the company outlined plans to expand in AI data-center hardware, including through partnerships with Amazon and Meta that were announced earlier this year.

The company forecasts approximately $650 million in data-center revenue for the first quarter of 2027. It expects that figure to rise to $5 billion by the end of 2027 and $15 billion by 2029. Qualcomm reported total revenue of $10.4 billion for 2026 and said data-center products could eventually represent about 30 percent of its business.

That target is below AMD’s expectation that data centers will ultimately generate more than 80 percent of its revenue. Qualcomm’s forecast nevertheless reflects its view that demand for AI infrastructure remains large enough to support additional suppliers and investment.