Data center chips are big business these days and Qualcomm wants a piece of that pie. The company has reported in its latest earnings call that it predicts it will be getting a significant portion of its revenue from data centers in the coming years. Amidst the AI boom, companies have flocked to data centers to benefit from the cash cow as the need for RAM was too good to pass up for companies like Micron, Samsung, and SK Hynix. But data centers need more than just RAM, and Qualcomm is planning to be the provider of these chips in at least some capacity.
Qualcomm is generally getting most of its revenue from smartphones. It provides a comprehensive suite of chips that power some of the world’s most advanced mobile devices. But like everything else that contains RAM and storage, smartphone sales have dwindled because of higher costs and that has ended up affecting Qualcomm’s overall returns. So it’s shifting gears a little to include data centers as way to bring in some of that last money.
Qualcomm expects that data center chips will eventually account for 30% of its business
According to the company’s latest reports, it has told investors that it expects data centers to account for pretty significant portion of its business in the near future. All told, about 30%. Qualcomm says that by 2029, it believes that it believes that it will reach $15 billion in revenue from data centers.
The company is also predicting that it will float around $650 million within the first quarter of 2027, and reach $5 billion by the end of that year. With smartphone sales down, Qualcomm is looking to the industry that has yet to fail chip makers. Qualcomm has previously confirmed partnerships with Amazon and Meta for some of this business.
The post Qualcomm expects $15 Billion in data center revenue by 2029 appeared first on Android Headlines.
​Â
