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Digitimes November 5, 2026 By DIGITIMES neutral

Analysis: Qualcomm's AI server CPU ambitions gain urgency as smartphone slump threatens its core business

QualcommAI / LLMSemiconductorsData Center
Qualcomm's weakening smartphone business is accelerating its transformation into an AI infrastructure supplier, with custom accelerators, server CPUs, and optical connectivity emerging as growth priorities. Following a 26% annual decline in handset chip revenue in fiscal 4Q26, the US chipmaker is targeting US$5 billion in data center revenue in fiscal 2027 and US$15 billion by fiscal 2029. The question is whether these businesses can scale quickly enough to offset pressures in its traditional market.
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