Qualcomm Eyes $3B Data-Center Push Ahead of Investor Day
J.P. Morgan says Qualcomm could target over $3B in data-center revenue by fiscal 2027, but Wall Street remains skeptical of the AI pivot.
Qualcomm is preparing to announce an ambitious artificial intelligence strategy at its upcoming investor day, with J.P. Morgan projecting the chipmaker could set a target exceeding $3 billion in data-center revenue for fiscal year 2027, according to a report from Yahoo Finance. The move signals a significant strategic shift for a company best known for powering smartphones rather than cloud infrastructure.
The pivot comes as the broader semiconductor industry races to capture a share of surging AI infrastructure spending, with rivals like Nvidia dominating the data-center GPU market. Qualcomm's push into this space would require convincing enterprise customers and hyperscalers that its chips can compete on performance and efficiency — a challenge Wall Street appears reluctant to dismiss as solved.
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Despite the bullish framing from J.P. Morgan, broader analyst sentiment remains cautious. Investors appear to be weighing the considerable execution risk involved in breaking into a data-center market already crowded with entrenched players, even as Qualcomm leverages its established expertise in power-efficient chip design to make its case.
The investor day event is shaping up as a critical moment for Qualcomm's leadership to lay out concrete timelines, customer commitments, and product roadmaps that could either validate or deflate the AI growth narrative the company has been building. Without clear proof points, skeptics on Wall Street are unlikely to reprice the stock around a data-center story that has yet to generate meaningful revenue.
Continue reading at Yahoo.
