Qualcomm Pivots Toward AI Data Centers as Smartphone Sales Slow Down

Amid a roughly 20% decline in smartphone sales compared to 2025, chipmaker Qualcomm is accelerating its strategic expansion into artificial intelligence data centers. During its Q4 2026 earnings call, leadership detailed aggressive growth trajectories anchored by partnerships with Amazon and Meta.

Qualcomm forecasts data center revenue to hit $650 million in Q1 2027, scaling rapidly to $5 billion by the end of 2027 and reaching $15 billion by 2029. Company executives confirmed that data center silicon is projected to eventually account for approximately 30 percent of total business operations, marking a historic pivot in revenue diversification.