Qualcomm is looking to data centers to offset a steep drop in smartphone sales. During its Q4 2026 earnings call, the chipmaker outlined plans to expand its data center business, building on partnerships with Amazon and Meta that were announced earlier in 2026. The Verge reports that smartphone sales are down about 20 percent compared with 2025.
Qualcomm expects data center revenue to reach about $650 million in the first quarter of 2027. It forecasts $5 billion by the end of 2027 and $15 billion by 2029. The company also said it expects data centers to eventually account for about 30 percent of its business. It did not give a date for reaching that share.
A new growth target
The forecasts show how much Qualcomm hopes its business will change. Its traditional smartphone market is under pressure, while it is positioning itself to sell chips into data centers. The company’s projections rise sharply over a short period: the 2029 target is three times its forecast for the end of 2027. Those figures are expectations, not reported sales, and Qualcomm has not laid out in this account how much of the forecast is tied to specific customers or products.
Amazon and Meta are named as partners, but the announcement details in the earnings-call account do not explain what chips they will use, when any systems will be available, or how much revenue either partnership could bring. That leaves open how quickly the partnerships will translate into sales.
How it compares with AMD
Qualcomm’s 30 percent long-term target is smaller than AMD’s stated expectation that more than 80 percent of its revenue will eventually come from data centers. The two companies are setting different targets, and the figures do not show which one will meet its goals or how large the market will be. Qualcomm’s forecast does, however, show that it sees data centers as a substantial business alongside its smartphone-related operations.
Why it matters
For companies that build or operate data centers, Qualcomm is signaling that it wants to become another chip supplier, alongside firms such as AMD. That could broaden their options if Qualcomm’s plans turn into available products, but the call details do not establish when those chips will ship or what they will cost.
