Qualcomm Targets $15B AI Chip Sales, $40B Non-Handset Revenue by 2029
QCOM•Qualcomm forecasted $15B annual revenue from data-center AI components and $40B in non-handset sales by fiscal 2029, doubling its previous long-range targets. The company unveiled new AI accelerators, secured a multi-year Meta deal for its Dragonfly C1000 processor, and executives highlighted power-efficient CPUs to challenge Nvidia’s dominance.
1. Investor Day Sales Projections
At its Manhattan investor day, Qualcomm forecast annual AI component sales in data centers of more than $15 billion by fiscal 2029 and projected $40 billion in non-handset revenue over the same period, representing a twofold increase in its long-range targets.
2. New AI Chips and Meta Partnership
The company unveiled its latest AI accelerators and central processing units, including the Dragonfly C1000 processor, and announced a multi-year supply deal with Meta to integrate the chip into data-center operations.
3. Diversification Beyond Smartphones
Qualcomm highlighted progress in automotive driver-assistance systems, connected-vehicle technologies, smart home devices and wearables as part of its strategy to reduce reliance on mobile-phone chips and achieve non-handset growth.
4. Competing on Efficiency Against Nvidia
While Nvidia remains the market leader with a $4.7 trillion capitalization, Qualcomm emphasized power-efficient CPU designs to address data-center energy concerns and carve out a competitive position in the crowded AI chip market.
