Qualcomm Targets $40B Non-Handset Revenue by 2029, Signs Meta CPU Deal
QCOM•Qualcomm raised its fiscal 2029 non-handset revenue target to $40 billion, including $15 billion from data center products, with $10 billion in automotive and $14 billion in IoT. It also struck a deal with Meta to supply Dragonfly C1000 CPUs for AI infrastructure starting H2 2028.
1. Ambitious 2029 Revenue Targets
Qualcomm doubled its fiscal 2029 non-handset revenue goal to $40 billion, up from $20 billion, and outlined a breakdown including $15 billion from data center products, $14 billion from IoT, $8 billion from industrial, networking and robotics, $6 billion from personal AI and compute, and $10 billion from automotive. Handsets are expected to account for about one-third of QCT revenue by 2029, while the automotive design-win pipeline has grown to $65 billion with a $6 billion annualized run rate exiting fiscal 2026.
2. Data Center Strategy and Meta Deal
At its investor day, Qualcomm unveiled plans for a full suite of data center offerings—chips, servers, software and custom processors—and secured a deal with Meta to supply its Dragonfly C1000 CPUs for AI infrastructure, with production slated for the second half of 2028. The company aims to challenge incumbents like Nvidia and AMD by delivering competitive performance and power efficiency, leveraging strong cloud and AI demand for more supplier options.
3. Market Expansion and Software Push
Beyond data centers, Qualcomm is targeting China as a key market for its AI processors despite export controls, and is deepening its push into automotive and PC chips to diversify beyond smartphones. The recent acquisition of AI software firm Modular provides a software platform to rival established ecosystems, enabling developers to optimize AI workloads on Qualcomm’s GPUs and custom accelerators.
