Qualcomm is betting big on data centers as smartphone sales sink
With smartphone sales down significantly year-over-year, Qualcomm is pivoting toward data center infrastructure for AI, leveraging partnerships with Amazon and Meta announced earlier in 2026. The company provided revenue forecasts showing rapid projected growth in this segment from $650 million in Q1 2027 to $5 billion by end of 2027 and $15 billion by 2029, compared to total 2026 revenue of $10.4 billion. This represents a strategic diversification away from the declining smartphone market.
Key points
- Smartphone sales down ~20% year-over-year, prompting business shift
- AI data center revenue projected to grow from $650M to $15B by 2029
- Partnerships with Amazon and Meta support data center expansion
- Data center business could exceed traditional smartphone revenue
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