Qualcomm forecasts $15 billion data center chip sales by 2029, shares soar

Qualcomm said it expects to generate $15 billion in sales from its data center business ​by 2029 as it moves beyond its ​core smartphone chips, sending shares more than 12% higher in after-hours trading on Wednesday.

Chief ​Financial Officer Akash Palkhiwala said at an investor presentation that the data center business will bring in $5 billion for fiscal 2027, with $1 billion coming from the new custom-chip customers.

Qualcomm also said it expects $40 billion in revenue from chips outside its smartphone stronghold by 2029, up from ‌previous estimates of $22 billion, ⁠and ⁠with handsets only making up a third of its chip revenue by then.