Qualcomm Targeted $15 Billion Data Center Revenue

The chipmaker aims to diversify its portfolio by fiscal 2029 through a new CPU collaboration with Meta.

Updated on Oct. 6, 2026 in Data Centers

Qualcomm Targeted $15 Billion Data Center Revenue

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Qualcomm has set a $15 billion revenue target for its data center business by fiscal 2029. The company also announced Meta as the inaugural customer for its new Dragonfly C1000 CPUs.

Why it matters

This shift highlights Qualcomm's strategic move to reduce reliance on handset sales, targeting a broader $40 billion revenue goal for non-handset segments by 2029.

The Dragonfly C1000 CPU is a multi-generational product designed for server infrastructure. Qualcomm also maintains custom silicon partnerships with Amazon for AI data center chips and optical connectivity solutions.

The players

Qualcomm

This American multinational corporation creates semiconductors, software, and services related to wireless technology.

The details

The Dragonfly C1000 serves as the cornerstone of a multi-generational CPU collaboration intended for Meta servers. Beyond Meta, Qualcomm is expanding its footprint through an existing partnership with Amazon to develop custom AI data center chips and optical connectivity for AWS.

June 2026: Qualcomm hosted its Investor Day.
Second half of 2028: Dragonfly C1000 production is expected to begin.
Fiscal 2029: Target date for achieving $15 billion in data center revenue.
2030: Horizon for the estimated $1.7 trillion addressable market.

The Tech Race

Qualcomm is aggressively pivoting away from a business model historically dominated by mobile devices to challenge established server CPU incumbents. This expansion into data centers puts the company in direct competition with major silicon players for a share of a projected $1.7 trillion addressable market.

The transition of this major chipmaker into the data center space could influence the future cost and efficiency of the cloud services used by most internet users. As infrastructure becomes more specialized with custom silicon, consumers may eventually experience faster processing speeds in their favorite web applications.

The takeaway

Qualcomm is signaling a major shift toward high-growth enterprise infrastructure to balance its long-term revenue profile. Readers should monitor these partnerships as indicators of how hardware giants are successfully pivoting toward the evolving demands of artificial intelligence and cloud computing.