Qualcomm targets $40B non-phone revenue by 2029 with AI push
The chipmaker doubled its diversification goal and announced $15 billion in planned data center sales, challenging Nvidia's dominance.
Qualcomm announced a dramatic expansion of its business beyond smartphones, doubling its non-handset revenue target to $40 billion by fiscal 2029. The revised forecast includes $15 billion in anticipated data center revenue, marking the company's most aggressive push yet into AI infrastructure.
The chipmaker's stock surged more than 13% in after-hours trading following the announcement at its investor day event in New York on Wednesday.
Why it matters
Qualcomm's pivot represents a fundamental shift for a company long synonymous with mobile processors. By targeting data centers—the engine room of AI development—Qualcomm is betting it can carve out meaningful market share even as Nvidia commands the space. The move also signals growing customer appetite for alternatives to Nvidia's ecosystem, potentially reshaping competitive dynamics in AI infrastructure.
Taking on Nvidia's data center dominance
Qualcomm outlined plans for a comprehensive data center portfolio spanning chips, servers, software, and custom processors. The company enters a market where Nvidia holds commanding share, while AMD prepares its own server rack offerings and numerous startups vie for position in the global AI buildout.
CEO Cristiano Amon told media that demand for AI processors has created enthusiasm for new competitors. "I have not met a single one of those cloud and AI companies that have not said to me how excited they are," Amon said, noting business leaders welcome Qualcomm's entry into data center competition.
The company also plans to target China with its data center products. "Everything that we're building for the data center, you should assume that China is going to be a target market," Amon stated. This comes as US policy on AI chip exports to China remains in flux, with the Trump administration recently indicating it would permit sales of certain Nvidia AI processors, though Chinese government approval remains pending.
Broader diversification strategy
Data centers represent one pillar of Qualcomm's transformation away from smartphone dependence. The company projects automotive sales will reach $10 billion in fiscal 2029, while it competes with Intel and AMD in PC processors.
Qualcomm recently acquired AI software company Modular, gaining access to a platform that rivals Nvidia's CUDA software ecosystem. The acquisition enables developers to build AI applications optimized for Qualcomm's graphics processing units.
Market reaction
AI stocks had pulled back earlier in the week on growth concerns but rallied following Qualcomm's announcement and strong quarterly earnings from memory chipmaker Micron.
These details were first reported by AI Watch.
This is an original analysis by the Omega editorial team. Source reporting: AI Watch.
Want systems like this working for your business?
Book a Call
