Qualcomm leans into AI data centers as smartphone sales decline
Qualcomm is betting that growth in AI data centers can offset weakness in its core smartphone business. Smartphone sales are down approximately 20% compared with 2025, prompting the company to expand its focus on data-center processors and related products.
During its Q4 2026 earnings call, Qualcomm said its data-center business could generate around $650 million in revenue in the first quarter of 2027. That figure is expected to rise to $5 billion by the end of 2027 and $15 billion by 2029. For comparison, Qualcomm reported total revenue of $10.4 billion for 2026.
The strategy is supported by partnerships with companies including Amazon and Meta, announced earlier in the year. If the forecasts materialize, data centers would become a substantially larger part of Qualcomm’s business as traditional handset sales remain under pressure.