Qualcomm is turning to AI data centers for growth as smartphone sales decline. On its Q4 2026 earnings call, the company outlined plans to expand in the market, building on partnerships with Amazon and Meta announced earlier this year.
The company expects data center revenue to reach about $650 million in the first quarter of 2027, rising to $5 billion by the end of that year and $15 billion by 2029. Qualcomm said data centers could eventually account for around 30 percent of its business.
The shift comes as smartphone sales are reported to be down about 20 percent compared with 2025. Qualcomm reported total revenue of $10.4 billion for 2026, making its projected data center expansion a significant potential contributor to its business.
Sources: The Verge.