Qualcomm plans initial shipments of custom data center chips to a leading hyperscaler in the December quarter, marking a multi-generation strategic engagement beyond its handset chip business. Its automotive segment posted record $1.3 billion revenue, up 38% year-over-year, underlining diversification ahead of Investor Day on June 24 for deal specifics.
Qualcomm announced it is entering the custom data center silicon market with a leading hyperscaler, expecting initial shipments in the December quarter. Management described the initiative as a multi-generation engagement, indicating a long-term strategic partnership rather than a one-off sale, and positioning Qualcomm as a competitor in AI infrastructure.
While the handset division faces challenges, Qualcomm’s automotive segment continues to accelerate, delivering record revenues of $1.3 billion and 38% year-over-year growth. This performance underlines the company’s successful diversification strategy into new markets beyond smartphones.
Qualcomm has scheduled its Investor Day for June 24, where it aims to disclose concrete details on the hyperscaler agreement. Key metrics to watch include the customer identity, chip architecture, anticipated revenue scale and any multi-quarter forecasts tied to the custom silicon program.
