Qualcomm Launches AI Data Center Chips, Targets $15 Billion Revenue by 2029
Qualcomm unveiled its AI data center CPU Dragonfly C1000 and AI300 chip, securing Meta as first major customer and Microsoft for its HBC architecture. The company raised its non-handset revenue target to $40 billion by 2029, with data center sales exceeding $15 billion. Qualcomm also acquired software firm Modular for ~$4 billion to challenge Nvidia’s CUDA platform. Shares surged over 12% on the news, with seven analyst firms raising price targets.
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Qualcomm Investor Day Unveils Aggressive AI Diversification Strategy
Qualcomm's Investor Day on June 29, 2026, revealed a transformative long-term outlook that nearly doubled its fiscal 2029 non-handset revenue target from $22 billion to $40 billion, driven by expansion into data center, automotive, and IoT markets. The company announced that Microsoft and Meta have signed on as early customers for its data center AI solutions, providing strong blue-chip validation. Management outlined three growth pillars: a $15 billion data center business, $10 billion in automotive, and $14 billion in IoT, which would reduce handset chip revenue to about one-third of total chip revenue by 2029. Analysts at Morgan Stanley, JPMorgan, and Benchmark raised price targets, though risks remain from the anticipated loss of Apple revenue. The stock traded around $200 post-announcement.
Yahoo FinanceQualcomm Promises $15 Billion in AI Chip Sales Despite Products Not Yet Shipping
Qualcomm CEO Cristiano Amon announced at the company's Investor Day on June 24, 2026, a target of over $15 billion in annual data center AI chip sales by fiscal 2029. However, the chips powering this projection—including the Dragonfly C1000 CPU and custom AI inference silicon—will not ship until 2028 at the earliest. Investors reacted with initial optimism (shares rose 13-15% after-hours) but later sold off, with the stock closing at $204.90, down 7.66% from June 22. Qualcomm also announced a $3.92 billion acquisition of AI software firm Modular and a CPU supply agreement with Meta Platforms. The article contrasts Qualcomm's ambitious roadmap with Nvidia's dominant market position (over 70% market share, $75.246 billion in quarterly data center revenue) and AMD's established presence, highlighting the competitive challenges Qualcomm faces in entering the AI chip market.
Yahoo FinanceQualcomm Stock Rises on AI Data Center Growth Targets and New Dragonfly C1000 CPU
Qualcomm (NASDAQ: QCOM) shares rose on June 25, 2026, after the company announced ambitious AI-fueled growth targets at its 2026 Investor Day. The chipmaker unveiled its new Dragonfly C1000 CPU, designed to run agentic AI workloads in data centers, leveraging its expertise in low-power computing. Meta Platforms has already signed on as a customer, planning to use the chip in its next-generation data centers starting in the second half of 2028. Qualcomm now expects its non-handset revenue to reach $40 billion in fiscal 2029, double its prior forecast, with adjusted earnings per share of over $18. CEO Cristiano Amon highlighted the company's strength across low-power computing, AI, and connectivity. The article also includes a disclaimer that The Motley Fool's Stock Advisor did not include Qualcomm among its 10 best stocks to buy now.
Yahoo FinanceQualcomm Says AI Data Centers Will Become Its Next Big Growth Engine
At its Investor Day in New York City, Qualcomm announced a strategic pivot toward AI data centers as a major growth engine, alongside its traditional smartphone chip business. CEO Cristiano Amon described this as the company's 'next chapter,' emphasizing edge diversification and a new data-center roadmap. Qualcomm confirmed the $3.9 billion acquisition of AI software startup Modular to add a software layer to its AI strategy. Management set a target of over $15 billion in data-center revenue by fiscal 2029, with two hyperscaler customers expected to drive at least $1 billion in revenue within the year. Qualcomm unveiled its Dragonfly C1000 CPU for AI workloads, with Meta announced as a multigeneration customer for data-center CPUs, and Microsoft supporting its high-bandwidth compute technology. CFO Akash Palkhiwala described the transition as moving from a devices company to a cloud and device company.
Yahoo FinanceQualcomm Unveils AI Data Center Chips and Servers, Doubles Revenue Forecast
Qualcomm, traditionally a smartphone chip designer, is pivoting aggressively into the AI data center market. At its investor day, the company revealed a new line of data center components including an AI accelerator, memory products, a CPU, networking capabilities, and full-rack servers, positioning itself as a turnkey alternative to Nvidia. CFO Akash Palkiwala announced a nearly doubled fiscal 2029 non-handset revenue target of $40 billion, with $5 billion expected from data center products in fiscal 2027 and $15 billion by fiscal 2029. The move follows slowing smartphone growth and the loss of Apple as a key customer. Investors reacted positively, with Qualcomm stock rising 13% on the news. The company is evolving from a smartphone and edge device firm into a rack-scale infrastructure provider.
Yahoo FinanceQualcomm unveils data center AI chips with Meta as CPU customer
Qualcomm announced a comprehensive data center AI strategy at its 2026 Investor Day, revealing that Meta Platforms will use its new Dragonfly C1000 central processing units, expected in 2028. Microsoft's Azure cloud unit has also committed to using Qualcomm's High Bandwidth Compute chip architecture, slated for mid-2027. Qualcomm raised its fiscal 2029 non-handset revenue target to $40 billion, roughly double prior guidance, with a data center revenue target exceeding $15 billion. The company also targets over $18 in non-GAAP earnings per share by fiscal 2029. Handsets, which accounted for 72% of chip revenues in fiscal 2025, are projected to shrink to roughly one-third by fiscal 2029. Additionally, Qualcomm agreed to acquire AI software startup Modular for $3.92 billion to deepen its software capabilities for data center AI inference. Qualcomm shares rose 11% ahead of the opening bell following the announcements.
Yahoo FinanceQualcomm unveils data center AI chips, Meta as CPU customer
Qualcomm announced a comprehensive data center AI strategy at its 2026 Investor Day, revealing that Meta Platforms will use its new Dragonfly C1000 CPUs (available 2028) and Microsoft Azure will use its High Bandwidth Compute chip (mid-2027). The company raised its fiscal 2029 non-handset revenue target to $40 billion (doubling prior guidance), with data center revenue target exceeding $15 billion. Qualcomm also set $10 billion automotive and $14 billion IoT revenue targets. Handset chip revenue share is expected to shrink from 72% to roughly one-third by fiscal 2029. Separately, Qualcomm agreed to acquire AI software startup Modular for $3.92 billion in stock, aiming to strengthen data center AI inference capabilities. Qualcomm shares rose 11% in pre-market trading.
Yahoo FinanceQualcomm Stock Jumps on Meta Data Center Deal, Then Retreats Amid Mixed Analyst Sentiment
Qualcomm (QCOM) shares surged up to 11% to $219 in early trading on June 25, 2026, before pulling back to $207, following the announcement of a landmark multi-generation agreement with Meta Platforms (META) to supply data center CPUs. Meta is Qualcomm's first data center customer, with the Dragonfly C1000 chip entering production in H2 2028. The company also doubled its fiscal 2029 non-handset revenue target to $40 billion, including over $15 billion from data center sales, and acquired AI startup Modular for $4 billion to compete with Nvidia's CUDA. At least seven analysts raised price targets, with Rosenblatt upgrading to Buy ($265 target) calling it a definitive turning point, while Barclays maintained Underweight and called Qualcomm a 'show-me story.' Other cautious ratings came from Bernstein, Cantor Fitzgerald, and Citi. The stock remains up 18% year-to-date.
Yahoo FinanceQualcomm Surges 11% on Meta Data Center Deal and Analyst Target Hikes, Then Pulls Back
Shares of Qualcomm jumped as much as 11% in early trading before retreating to a 5% gain, following the company's Investor Day announcements. Qualcomm secured Meta Platforms as its first-ever data center customer for its Dragonfly C1000 CPU, with production starting in H2 2028. The chipmaker also doubled its fiscal 2029 non-handset revenue target to $40 billion, targeting over $15 billion from data center revenue, and agreed to acquire AI startup Modular for $4 billion to challenge NVIDIA's CUDA ecosystem. Despite seven firms raising price targets—with Rosenblatt setting a $265 target and a Buy rating—most analysts remain cautious, with Barclays calling Qualcomm a 'show-me story' and keeping an Underweight rating. The stock remains up 18% year to date.
Yahoo FinanceQualcomm jumps as it looks beyond smartphones to cash in on the AI boom
Qualcomm (QCOM) stock surged over 12% in premarket trading after announcing a revised non-handset revenue target of $40 billion by fiscal 2029, double its prior goal, including $15 billion from new data center revenue. At its investor day in New York, the company outlined plans for data center products like chips, servers, and custom processors, entering a market dominated by Nvidia and AMD. CEO Cristiano Amon stated that cloud and AI companies are eager for competition in the AI chip space. Qualcomm also aims to bring its AI offerings to China, despite fluctuating US export restrictions. The move is part of a broader transformation away from smartphones, including expansion into automotive ($10 billion target by 2029) and PC chips. The announcement follows Qualcomm's acquisition of AI software firm Modular, which competes with Nvidia's CUDA platform. AI stocks overall rose on this news and Micron's strong earnings.
Yahoo FinanceQualcomm debuts line of AI data center chips and systems, increasing competition with Nvidia
Qualcomm dramatically expanded its presence in the AI data center market by announcing a new line of products including the Dragonfly C1000 CPU, Dragonfly AI300 chip, rack servers, and HBC memory technology. The company has secured high-profile customers Microsoft and Meta, with Meta signing a multigeneration agreement for the Dragonfly C1000 CPU. Qualcomm also announced the acquisition of AI software company Modular to compete with Nvidia's CUDA platform, enabling customers to run CUDA-based software on Qualcomm hardware. The products are part of Qualcomm's transformation away from smartphone reliance into data centers, automotive, and PC chips. The AI300 is expected to begin commercial sampling in 2028. Qualcomm faces strong competition from Nvidia, AMD, hyperscalers like Amazon and Google, and OpenAI's new custom chip with Broadcom. Qualcomm stock has risen 24% over the past 12 months.
Yahoo FinanceQualcomm Unveils AI Data Center CPU Dragonfly C1000; Meta First Major Customer
Qualcomm announced a new data center CPU called Dragonfly C1000 at an investor presentation, stating that Meta will be the first major customer when production begins in 2028. The chip is designed for agentic AI and emphasizes high compute performance combined with low power consumption, leveraging Qualcomm's expertise in efficient smartphone and PC chips. Qualcomm also outlined a broader roadmap for the data center market, including AI chips and multi-chip interconnect products. CFO Akash Palkhiwala highlighted that existing relationships with hyperscalers from smartphone chip sales provide a foundation. The announcement comes as investor interest in CPUs grows due to AI agent workloads, and as Qualcomm diversifies beyond its core smartphone business, which still accounts for two-thirds of revenue. Separately, Qualcomm acquired software startup Modular to help AI applications run on diverse chip architectures, positioning it as a rival to Nvidia's CUDA.
US Top News and AnalysisQualcomm forecasts $15 billion data center chip sales by 2029, shares soar
Qualcomm announced at an investor presentation that it expects to generate $15 billion in sales from its data center business by 2029, as it diversifies beyond its core smartphone chip market. CFO Akash Palkhiwala projected $5 billion in data center revenue for fiscal 2027, with $1 billion from new custom-chip customers. The company also raised its non-smartphone chip revenue forecast to $40 billion by 2029, up from $22 billion previously. Qualcomm revealed that Microsoft and Meta will use its new AI chips, and it will make custom chips for two unnamed hyperscalers. The news sent Qualcomm shares up over 12% in after-hours trading. Arm Holdings, which supplies underlying technology for Qualcomm chips, rose 5%. The move positions Qualcomm in the competitive data center AI chip market against Nvidia, Cerebras, and custom chips from Amazon and Google.
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