Qualcomm is betting big on data centers as smartphone sales sink

<figure> <img alt="Qualcomm logo over a multicolored illustration" data-caption="" data-portal-copyright="Illustration by Alex Castro / The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/24007992/acastro_STK082_qualcomm_02.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" /> <figcaption> </figcaption> </figure> <p class="wp-block-paragraph">With smartphone sales <a href="https://www.theverge.com/gadgets/1009588/global-smartphone-sales-just-hit-a-14-year-low">tanking by around 20 percent</a> compared to 2025, Qualcomm is looking to data centers to help boost its bottom line. During its <a href="https://investor.qualcomm.com/files/content_files/FY2026-4th-Quarter-Earnings-Presentation_Final.pdf">Q4 2026 earnings</a> call, the company laid out its plans to make a splash in the AI data center business, through partnerships with companies like <a href="https://www.theverge.com/ai-artificial-intelligence/991372/qualcomms-collaborating-with-amazon-on-multiple-generations-of-chips-for-aws-data-centers">Amazon</a> and <a href="https://www.qualcomm.com/news/releases/2026/06/qualcomm-and-meta-announce-strategic-multi-generation-agreement-">Meta</a> announced earlier this year. The company expects that portion of its business to grow quickly, forecasting around $650 million in data center revenue during the first quarter of 2027. But it anticipates that will reach $5 billion by the end of 2027 and $15 billion by 2029.</p> <p class="wp-block-paragraph">Considering the company's <a href="https://investor.qualcomm.com/files/content_files/FY2026-4th-Quarter-Earnings-Release.pdf">total revenue</a> for 2026 was $10.4 billion, …</p> <p><a href="https://www.theverge.com/ai-artificial-intelligence/1026867/qualcomm-earnings-data-centers">Read the full story at The Verge.</a></p>