Pivoting to data centers as phone sales fall
In its Q4 2026 earnings call, Qualcomm said smartphone sales dropped about 20% compared to 2025. To offset that decline, the company is turning to the AI data center business.
Amazon and Meta partnerships
Qualcomm plans to gain ground in the data center market through partnerships with Amazon and Meta announced earlier this year. The company expects this segment to grow quickly.
Revenue expectations
Qualcomm forecasts around $650 million in data center revenue in the first quarter of 2027. It expects that figure to reach $5 billion by the end of 2027 and $15 billion by 2029. For comparison, the company's total revenue for 2026 was $10.4 billion.
