Qualcomm Targets $2–5B AI Data Center Revenue, Cuts EPS Guidance 24%
QCOM•Qualcomm will ship AI data center CPUs, inference accelerators and ASICs by year-end, targeting $2–5 billion in annual revenue by fiscal 2027-28 and is acquiring AI software startup Modular for $4 billion. The company also lowered its EPS guidance by 24%, highlighting persistent smartphone-market pressures.
1. AI Data Center Strategy
Qualcomm used its investor day to outline plans to expand beyond smartphones into data center chips, unveiling development of CPUs, inference accelerators and custom ASICs for AI workloads to challenge incumbents in the segment.
2. Revenue Projections
Bank of America analysts forecast Qualcomm’s data‐center business could generate $2–5 billion in annual revenue by fiscal 2027–28, reflecting both optimism for high‐performance AI chips and recognition of intense competition from Nvidia, Cerebras and cloud providers’ in-house designs.
3. Modular Acquisition
The company agreed to acquire AI software startup Modular in an all-stock transaction valued at $4 billion, aiming to offer a proprietary software stack to support its hardware platforms and counter Nvidia’s CUDA dominance.
4. Guidance Revision
Qualcomm lowered its full-year EPS guidance by 24%, citing persistent smartphone market headwinds from memory shortages and increasing in-house chip development by major handset customers.
