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Qualcomm Targets $5 Billion Data Center Revenue, Shifts Focus from Apple
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CNBC TV18•01-10-2026, 18:17
Qualcomm Targets $5 Billion Data Center Revenue, Shifts Focus from Apple
- •Qualcomm aims for $5 billion in data center revenue next year, a sharp increase from $300 million this year, by expanding into custom chips, CPUs, AI accelerators, and connectivity.
- •The company sees a $1 trillion total addressable market in data centers and aspires to capture 5% of it, driven by customer demand for alternative suppliers with technology expertise.
- •Qualcomm is building a position in the AI accelerator market, emphasizing specialized and disaggregated computing solutions optimized for specific tasks, leveraging its low-power, high-memory bandwidth expertise.
- •Revenue from Apple is expected to decline over the next 12-18 months, but Qualcomm plans to offset this with growth in data centers and its automotive business, which is projected to reach $10 billion by 2029.
- •Qualcomm is passing on higher component costs to customers due to increased demand and supply chain expenses, while also integrating agentic AI into its Snapdragon strategy across various devices.
Key Questions Answered
Qualcomm expects its data center business to generate approximately $5 billion in revenue next year for fiscal year 28, which is a sharp increase from the $300 million generated this year.
Qualcomm expects its automotive business to exit the current fiscal year at a run rate of about $7 billion, with an opportunity to reach approximately $10 billion by 2029.
Qualcomm employs approximately 20,000 engineers in India, working across development centers located in Bengaluru, Hyderabad, Chennai, and Delhi.
