Qualcomm stock soared nearly 15% in after-hours trading on Wednesday after the semiconductor giant significantly raised its long-term revenue outlook, underscoring its growing ambitions beyond the smartphone market and deeper expansion into data centers, artificial intelligence, and automotive technologies.
Stronger Growth Outlook Drives Investor Confidence
During its investor presentation, Qualcomm announced that it now expects non-handset revenue to reach $40 billion by fiscal 2029, nearly doubling its previous forecast of $22 billion. The company also projected adjusted earnings of more than $18 per share by 2029, surpassing analyst expectations. According to market estimates, analysts had forecast earnings per share of approximately $15.26 for the period.
The upgraded guidance reflects Qualcomm’s confidence in its diversification strategy as it expands into several high-growth technology segments.
Qualcomm Targets Data Center Opportunity
A key highlight of the announcement was Qualcomm’s aggressive push into the data center market. The company revealed plans to generate $15 billion in data center revenue by fiscal 2029 and introduced its new Dragonfly C1000 central processing unit (CPU), designed specifically for modern AI workloads.
Built to support agentic AI applications, the processor aims to deliver high-performance computing while maintaining energy efficiency—an increasingly important factor for large-scale data centers facing power constraints.
Qualcomm also disclosed that Meta plans to deploy the Dragonfly C1000 platform when production begins in 2028, marking a significant endorsement of the company’s data center ambitions.
Expanding Beyond Smartphones
While smartphones remain Qualcomm’s largest business, accounting for roughly two-thirds of product revenue in the quarter ended March, the company is increasingly focusing on faster-growing markets. These include automotive technology, robotics, AI infrastructure, and cloud computing.
Chief Executive Officer Cristiano Amon emphasized that Qualcomm has spent years building the capabilities needed to compete in data centers.
“We have been executing, collecting assets, and building a comprehensive portfolio to enter the next phase of the data center market,” Amon said during the investor event.
Chief Financial Officer Akash Palkhiwala noted that Qualcomm already maintains relationships with nearly every major hyperscale cloud provider through its existing chip businesses, giving the company a strong foundation for expansion.
Automotive and AI Expansion Gains Momentum
In addition to its data center strategy, Qualcomm raised its automotive design-win pipeline to $65 billion and increased its automotive revenue target to $10 billion by fiscal 2029.
The company also announced the acquisition of AI software startup Modular. Qualcomm believes the startup’s technology will help developers run AI applications across a wide range of chip architectures, strengthening its position in the rapidly evolving AI ecosystem.
With growing demand for energy-efficient computing and AI infrastructure, Qualcomm is positioning itself as a major contender in some of the technology industry’s most promising growth markets.
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