Qualcomm pivots to AI data centers as smartphone market declines

Qualcomm is strategically shifting focus toward the data center sector to offset a significant downturn in smartphone sales, which have dropped by approximately 20 percent compared to 2025. During its Q4 2026 earnings call, the company detailed its aggressive expansion into the AI data center market, leveraging prior partnerships with major entities such as Amazon and Meta. The semiconductor firm projects substantial growth in this new segment. Qualcomm anticipates generating around $650 million in data center revenue during the first quarter of 2027, with forecasts escalating to $5 billion by the close of 2027 and reaching $15 billion by 2029. This growth strategy is being pursued as the company reported total revenue of $10.4 billion for the full year of 2026.