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Qualcomm is betting big on data centers as smartphone sales sink
Qualcomm is turning to AI data centres to support growth as smartphone sales fall by around 20 per cent compared with 2025. The company expects data centre work to become a significant part of its business, building on partnerships with Amazon and Meta announced earlier this year.
Qualcomm forecast about $650 million in data centre revenue in the first quarter of 2027, rising to $5 billion by the end of that year and $15 billion by 2029. It expects data centres eventually to account for around 30 per cent of its business; its reported 2026 revenue was $10.4 billion.
In short
- Smartphone sales are down around 20 per cent year on year.
- Qualcomm forecasts $15 billion in data centre revenue by 2029.
- It expects data centres to make up around 30 per cent of its business.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Qualcomm’s data-centre push could diversify its business as smartphone sales weaken and build on partnerships with major technology companies. If its forecasts are realised, the new revenue could support growth and make its chip expertise useful across a wider range of computing needs.
The case against
The forecasts imply very rapid growth from an initial $650 million in quarterly revenue, so the plan carries execution and market risks. A substantial shift towards data centres could also demand investment and attention while Qualcomm’s smartphone business is under pressure, and expected revenue does not guarantee lasting profitability.
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