Industry·
Qualcomm Pivots to Data‑Center AI Chips as Smartphone Demand Slows
Qualcomm forecasts data‑center silicon to become a third of its revenue by 2029, targeting $15 billion in annual sales as phone shipments drop sharply.
Qualcomm reported a 20 percent year‑over‑year decline in smartphone chip revenue for 2026, pushing the company to accelerate its data‑center strategy. Partnerships with Amazon and Meta, announced earlier this year, are now translating into a projected $650 million in data‑center sales for Q1 2027.
Management expects that figure to climb to $5 billion by the end of 2027 and reach $15 billion by 2029, representing roughly 30 percent of total revenue. While AMD aims for an 80 percent data‑center share, Qualcomm’s trajectory signals a sizable new demand pool for AI acceleration hardware.
Why it matters for GPU / AI infrastructure
The shift creates additional competition for high‑performance AI accelerators, potentially lowering procurement costs for cloud builders. For operators like AiGpu, a broader supplier base means more flexibility in configuring GPU clusters and negotiating volume pricing.
- aigpu
- ai gpu
- ai gpu cloud
- aigpu dubai
- qualcomm
- data center
- ai chips
- smartphone market
By AiGpu Editorial · Editorial rewrite based on public reporting (The Verge AI)
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