Qualcomm expects $5 billion data center revenue by end of 2027

Qualcomm expects its data center business to generate $5 billion in revenue by the end of 2027 and $15 billion by 2029, the company said on its fourth-quarter earnings call on Wednesday.

The targets mark a push by Qualcomm, best known for smartphone processors, into AI data centers as its core market shrinks. Smartphone sales have fallen by about 20% compared with 2025, The Verge reported.

For the first quarter of 2027, the company forecast about $650 million in data center revenue. Qualcomm is building the business on partnerships with Amazon and Meta that it announced earlier this year.

Qualcomm shares fell 7% after the company issued a weak earnings forecast, even though its quarterly results beat expectations, CNBC reported on November 4, pointing to a memory shortage that is weighing on smartphone sales. Bloomberg reported that the stock tumbled in late trading as higher component prices cut into profit.

The company has been widening its business beyond handsets. SpaceX signed a multiyear deal with Qualcomm to build out base stations for its Starlink Mobile cellular network, CNBC reported on November 4, and The Wall Street Journal reported on October 27 on a joint venture between Anduril and Qualcomm to make rugged laptops for the military and government.

Its data center partners are spending heavily on capacity. Meta said on October 26 that it plans to raise up to $95 billion by selling stock to fund data centers.