Qualcomm’s $15 B Data Center Goal Intensifies Nvidia Competition
NVDA•Qualcomm nearly doubled its non-handset revenue target to $40 billion by fiscal 2029 and set a $15 billion data center goal, positioning it as a stronger rival to Nvidia in AI servers. Speculation that OpenAI may postpone its IPO until 2027 to reach a $1 trillion valuation sparked a tech selloff, heightening concerns over chip demand that could pressure Nvidia.
1. Qualcomm Raises Data Center Targets
Qualcomm announced nearly doubling its non-handset revenue target to $40 billion by fiscal 2029 and set a $15 billion data center revenue goal, marking its boldest push into AI servers to challenge incumbents.
2. Intensified Rivalry with Nvidia
This shift positions Qualcomm as a direct competitor to Nvidia’s data center GPU business, intensifying pricing and technological innovation pressures as both companies pursue contracts with hyperscalers and cloud providers.
3. Tech Selloff Follows OpenAI IPO Uncertainty
Speculation that OpenAI may delay its IPO until 2027 to secure a $1 trillion valuation triggered declines across AI and chip stocks, raising questions about the durability of future chip demand that underpins Nvidia’s growth.
