Qualcomm forecasts $15 billion data center chip sales by 2029, shares soar

Qualcomm said it expects to generate $15 billion in sales from its data center business by 2029, sending shares more than 12% higher in after-hours trading on Wednesday, Reuters reported June 24. Chief Financial Officer Akash Palkhiwala said at an investor presentation that the data center business will bring in $5 billion for fiscal 2027, with $1 billion coming from new custom-chip customers. The company also said it expects $40 billion in revenue from chips outside its smartphone business by 2029, up from previous estimates of $22 billion. Qualcomm said Microsoft will use its new High Bandwidth Compute chips for AI tasks and Meta will use its Dragonfly C1000 CPU designed for AI data centers. It added that it will make custom chips for two other unnamed hyperscalers, with revenue starting before year-end. Qualcomm said the forecasts reflect its push beyond smartphone chips. Reporting by Anhata Rooprai in Bengaluru; editing by Sayantani Ghosh and Sahal Muhammed.