--- title: "Qualcomm Targets $15 Billion in Data Center Revenue by 2029, Shares Jump 15%" description: "Qualcomm used its June 24 Investor Day to nearly double its fiscal 2029 non-handset revenue target to $40 billion, including more than $15 billion from data center chips, and named Meta as the anchor customer for a new server processor. The shares rose about 15% in extended trading." category: "Companies" category_url: https://boursel.com/category/companies author: "Hannah Blackwood" published: 2026-06-24T21:12:42.000Z updated: 2026-06-24T21:12:42.000Z canonical: https://boursel.com/article/qualcomm-targets-15-billion-in-data-center-revenue-by-2029-shares-jump-15 tags: ["qualcomm", "semiconductors", "data-center", "ai-chips", "meta"] --- # Qualcomm Targets $15 Billion in Data Center Revenue by 2029, Shares Jump 15% Qualcomm used its June 24 Investor Day to nearly double its fiscal 2029 non-handset revenue target to $40 billion, including more than $15 billion from data center chips, and named Meta as the anchor customer for a new server processor. The shares rose about 15% in extended trading. Qualcomm spent most of its history as the company whose chips sit inside Android phones. On Wednesday it told investors it intends to matter just as much inside the data center — and it brought one of the world's largest computing buyers on stage to make the case. At its June 24 Investor Day, the San Diego chipmaker raised its target for fiscal 2029 revenue from outside its core handset business to $40 billion, up from a prior forecast of $22 billion, [according to CNBC](https://www.cnbc.com/2026/06/24/qualcomm-data-center-cpu-meta.html). Of that, Qualcomm said it is now aiming for more than $15 billion from data center products — a category that barely registered on its income statement two years ago. The company also set a fiscal 2029 target for adjusted earnings of more than $18 a share. Investors responded quickly. After the presentation, Qualcomm shares rose roughly 15% in extended trading, [CNBC reported](https://www.cnbc.com/2026/06/24/qualcomm-data-center-cpu-meta.html), as the scale of the guidance increase ran ahead of what most analysts had modeled. ## A server chip — and a marquee customer The centerpiece of the strategy is a new data center processor, the Dragonfly C1000, [Qualcomm said in its Investor Day disclosures](https://www.businesswire.com/news/home/20260624286521/en/). The chip is designed for so-called agentic AI workloads, and Qualcomm pitched it as delivering computing performance without consuming as much power as rival parts. The detail that drew attention was the customer attached to it. Meta — the parent of Facebook and Instagram, and one of the largest builders of AI data centers — will use the Dragonfly C1000 when it enters production in 2028, [Qualcomm said](https://www.cnbc.com/2026/06/24/qualcomm-data-center-cpu-meta.html). An anchor customer of that size gives Qualcomm a credibility marker as it tries to break into a market it has never seriously contested. A data center CPU is the general-purpose processor that runs servers; it is distinct from the specialized accelerators, such as Nvidia's GPUs, that do the heavy lifting for training and running large AI models. Qualcomm is positioning its chip as the efficient workhorse that surrounds those accelerators. ## Diversifying away from the phone The data center push is part of a wider effort to reduce Qualcomm's dependence on smartphones, where growth has slowed and where the company faces the long-term risk of losing Apple as a modem customer. Beyond servers, Qualcomm said it has expanded its automotive design-win pipeline — the value of contracts it expects to convert into future revenue — to $65 billion, and raised its automotive revenue target to $10 billion by fiscal 2029, [according to its Investor Day materials](https://www.businesswire.com/news/home/20260624286521/en/). Taken together, the $40 billion non-handset goal would mean that by the end of the decade, the business Qualcomm was built on — selling chips and licenses for mobile phones — would account for a minority of its sales. ## The case for caution A roadmap is not shipped silicon. Qualcomm is entering a data center market dominated by Nvidia, with established competition from AMD, Broadcom, Marvell, Intel and the Arm-based designs the cloud providers are building themselves. The Dragonfly C1000 is not slated for production until 2028, leaving years in which rivals will advance and customers' plans may change. Wall Street's reaction also reflected expectations that were already elevated heading into the event: Qualcomm shares had run up in the weeks beforehand on anticipation of a data center announcement. Analysts have cautioned that much of the optimism was already in the price, and that the targets assume Qualcomm executes cleanly against entrenched incumbents. For investors, the Meta agreement is the most concrete piece of validation in Wednesday's presentation. The open question is whether Qualcomm can turn an ambitious roadmap and a single flagship customer into the recurring, multibillion-dollar franchise its 2029 targets now require. ## Sources - [Qualcomm stock pops 15% after chipmaker almost doubles projection for 2029 non-handset revenue](https://www.cnbc.com/2026/06/24/qualcomm-data-center-cpu-meta.html) - [Qualcomm surges post-market after Investor Day reveals $15B in data center revenue by fiscal 2029](https://seekingalpha.com/news/4607012-qualcomm-surges-post-market-after-investor-day-reveals-15b-in-data-center-revenue-by-fiscal) - [Qualcomm Accelerates Diversification with Comprehensive Strategy for Data Center](https://www.businesswire.com/news/home/20260624286521/en/)