During its Q4 2026 earnings call, Qualcomm outlined plans to expand into the AI data center business as smartphone sales decline by roughly 20 percent compared to 2025. The company pointed to partnerships with firms including Amazon and Meta, announced earlier this year, as part of this push. Qualcomm forecasts rapid growth in this segment, projecting around $5 billion by the end of 2027 and $10.4 billion.
Why it matters
The move signals a strategic shift for a company historically tied to the smartphone market. With mobile device sales falling, Qualcomm is looking to data centers and AI infrastructure as a new source of revenue.
Who should care
Investors, enterprise technology buyers, and observers of the AI data center and semiconductor markets will want to track how Qualcomm’s forecasts and partnerships develop.