Qualcomm Outlines Data-Center Ambitions
Qualcomm discussed an expansive data-center strategy at its recent investor day. The company is developing custom-chip services and standard microprocessors and AI accelerators. The former position it against companies such as Broadcom and Marvell, while it tackles companies such as AMD and Nvidia with the latter. Qualcomm has also acquired Modular, a supplier of AI software.
Meta stated it would buy Qualcomm’s data-center CPUs, which would be a lot more impressive if Meta hadn’t already announced similar agreements with world+dog. Seeded by its AlphaWave acquisition, Qualcomm’s custom business is doing well and expects each of two data-center customers to account for $1 billion in FY27. (Qualcomm’s fiscal year ends in September.) In historical terms, that’s big business; in the AI era, that’s a good start. Broadcom does 3× that per quarter. Qualcomm projects total data-center revenue to be $5B in FY27 and to triple in FY29.
The bottom line is that Qualcomm has ambitious data-center plans. Investments in various semiconductor and software technologies indicate that it understands the complementary pieces it must bring to market to fulfill these plans. Moreover, it’s well resourced owing to its foundational smartphone-technology business. Nonetheless, it’s one of several credible suppliers carving up a finite market. They won’t all succeed.
