TLDR
- Qualcomm has signed AI chip deals with three hyperscalers, including Microsoft and Meta, marking its entry into the AI data center market.
- The company targets a minimum of $15 billion in AI data center revenue by fiscal 2029, up from zero today.
- Qualcomm claims its chips deliver 4–8x more computing performance per watt compared to existing GPU-based architectures.
- QCOM stock currently trades around $173–$175, down roughly 30% from its 52-week high of $259.92.
- Analyst consensus sits at Hold, with an average price target of $219.76 — about 26% above the current price.
Qualcomm (QCOM) stock is trading around $173–$175, well off its 52-week high of $259.92, but the company just made a move that could change how investors think about its future.
Qualcomm has signed deals with three major hyperscalers to supply AI data center chips. Microsoft and Meta have been confirmed as two of the three partners. It’s a meaningful step for a company that had zero data center revenue a year ago.
The deals center on Qualcomm’s new chip lineup — the AI200, AI250, and the recently introduced Dragonfly AI300 inference accelerator. The Dragonfly C1000 CPU will also power Meta’s next-generation server fleet.
Microsoft’s Azure platform will use Qualcomm’s HBC (high-bandwidth compute) chips alongside the AI200 and AI250, with deployment expected to begin next year.
The core pitch to these hyperscalers is efficiency. Qualcomm says its architecture delivers 4 to 8 times more computing performance per watt than GPU-based alternatives by directly connecting processing cores to high-bandwidth memory.
That matters in a world where data center energy costs are a growing headache for big tech.
Qualcomm’s $15 Billion Target
Qualcomm has set a target of at least $15 billion in AI data center revenue by fiscal 2029. For context, total company revenue for fiscal 2025 came in at $44.3 billion.
To hit that number, Qualcomm would need to capture roughly one-tenth of a global AI processor market that Precedence Research forecasts will reach $146 billion by 2029.
The company also expects revenues from non-mobile businesses — including automotive and IoT — to grow at an average of 40% per year through 2029.
Recent Financials and Institutional Activity
Qualcomm’s most recent quarterly results showed earnings per share of $2.65, beating the consensus estimate of $2.56. Revenue came in at $10.60 billion, essentially in line with expectations but down 3.5% year over year.
Q3 2026 EPS guidance was set at $2.10–$2.30. Full-year EPS is forecast at $7.97.
Institutional investors are paying attention. NewEdge Wealth LLC increased its Qualcomm position by 7.0% in Q1, adding 19,412 shares and bringing its total to 298,683 shares valued at approximately $38.5 million.
Analyst activity has also picked up. Barclays upgraded QCOM from underweight to overweight in late June. Benchmark raised its price target from $225 to $300. Wells Fargo lifted its target from $230 to $265. Cantor Fitzgerald maintained a neutral rating with a $220 target.
The consensus rating across 38 analysts is Hold, with an average price target of $219.76.
On the insider front, CEO Cristiano Amon sold 10,000 shares at $180.00 on May 4th under a pre-arranged 10b5-1 plan. EVP Heather Ace also sold 3,200 shares at $177.82 the same day. Insiders have sold a combined 21,721 shares worth roughly $4 million over the past 90 days.
The stock carries a quarterly dividend of $0.92 per share, payable September 24th, representing an annualized yield of around 2.1%.
Qualcomm’s next earnings report is scheduled for July 29th.
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