Qualcomm Eyes $15B Data Center Sales by 2029, Spurs $400B AI Chip Rally
QCOM•Qualcomm said it expects $15 billion in data center sales by 2029 as it pivots beyond its core smartphone chip business to focus on AI workloads. Its strong forecast, alongside Micron's 12% post-close rally, helped ignite a $400 billion surge in chipmakers' market value.
1. Sector Rally Fueled by AI Forecasts
Shares of leading chipmakers surged, adding over $400 billion in collective market value after Micron and Qualcomm issued strong forecasts. Micron jumped 12% in after-hours trading on an above-consensus earnings outlook, while Qualcomm’s data center projections electrified investor sentiment across the PHLX chip index.
2. Qualcomm's AI Data Center Strategy
Qualcomm announced it expects $15 billion in data center revenue by 2029, marking a strategic expansion beyond its traditional smartphone chip segment. The company plans to leverage AI-specific architectures and partnerships to compete with established players in the growing server market.
3. Market Impact and Outlook
Despite recent valuation concerns and an 8% drop in the chip index earlier in the week, the sector remains up 90% year to date. Investors will monitor execution risks, capital spending timelines, and competitive responses as Qualcomm scales its data center business and integrates AI workloads.
