Qualcomm Projects $15B Data Center Revenue, $40B Non-Handset Sales by 2029

QCOM

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2026-06-25

Qualcomm expects over $15 billion in data center revenue by fiscal 2029, plus $10 billion in automotive and $14 billion in IoT for $40 billion in non-handset sales. It forecasts adjusted EPS above $18 and sees handset chips at one-third of QCT revenue as it pivots to AI.

1. Investor Day Revenue Targets

Qualcomm unveiled a plan to generate over $15B in data center revenue by fiscal 2029, alongside $10B in automotive and $14B in IoT, raising non-handset sales to roughly $40B. The company said handsets will account for only one-third of QCT revenue by that year.

2. Adjusted EPS Outlook and Business Pivot

Management projects adjusted EPS exceeding $18 by fiscal 2029 as Qualcomm shifts focus from smartphones to AI and edge computing. The firm highlighted a robust AI data center pipeline led by new chip designs under development.

3. Wall Street Reaction and Price Targets

Analysts responded with upgrades and raised price targets, including Morgan Stanley lifting its target to $231 and Rosenblatt to $265 with a Buy rating. Bernstein set a $235 target while BofA increased its target to $220 despite an Underperform stance.

4. Strategic Partnerships and Execution Risks

Qualcomm announced partnerships with Meta and Microsoft to support its data center ambitions and expand chip adoption. Investors will monitor whether the company can translate its sizable pipeline into revenue growth amid a potential smartphone market slowdown.