TLDR
- QCOM stock surged over 12% in pre-market trading after its Investor Day in New York
- Qualcomm raised its FY2029 non-handset revenue target to $40 billion, up from $22 billion
- Meta CEO Mark Zuckerberg confirmed a deal to deploy Qualcomm’s new Dragonfly C1000 CPU in its server fleet
- Microsoft’s Satya Nadella confirmed Azure will use Qualcomm’s High-Bandwidth Compute architecture
- Qualcomm also acquired AI software startup Modular in an all-stock deal worth ~$3.92 billion
Qualcomm stock jumped from a prior close of $197.41 to hit $220.76 in pre-market trading on Thursday, a move of over 12%, after the chipmaker held its Investor Day in New York City on Wednesday evening.
The catalyst was a string of major announcements that reframed Qualcomm’s long-term story around AI data centers rather than its traditional smartphone chip business.
The headline number: Qualcomm raised its FY2029 non-handset revenue target to $40 billion — nearly double the previous estimate of $22 billion.
Within that, the company is targeting $15 billion from data centers, $14 billion-plus from IoT, and $10 billion from automotive by fiscal 2029. It also set an adjusted EPS target of more than $18 for that year, well above current analyst estimates of $15.26.
CEO Cristiano Amon told investors the company has been “executing, collecting assets,” and now has a “comprehensive portfolio to enter the next phase of the data center.”
The Dragonfly C1000 and the Meta Deal
The product at the center of it all is the Dragonfly C1000 — a 250-core server CPU built on Qualcomm’s custom Oryon architecture and designed specifically for agentic AI workloads.
Meta CEO Mark Zuckerberg appeared on stage to confirm a multi-generational agreement to deploy the Dragonfly C1000 in Meta’s server infrastructure. Production is set to begin in the second half of 2028.
Microsoft CEO Satya Nadella also confirmed that Azure will deploy Qualcomm’s High-Bandwidth Compute (HBC) architecture — a chip category built on cheaper memory used in smartphones and laptops, as an alternative to the expensive high-bandwidth memory chips used by Nvidia.
The Modular Acquisition
Qualcomm also announced the acquisition of AI software startup Modular in an all-stock deal valued at approximately $3.92 billion.
Modular’s software allows AI models to run across chips from multiple vendors — including Nvidia and AMD — without needing architecture-specific code. It positions Qualcomm as an open-ecosystem alternative to Nvidia’s dominant CUDA platform.
The company also disclosed two custom silicon deals with unnamed hyperscalers starting in late 2026.
The move came the same day Micron Technology reported blowout fiscal Q3 earnings, boosting sentiment across the semiconductor sector and lifting Nasdaq futures.
Prior to the event, JPMorgan had placed QCOM on Positive Catalyst Watch and raised its price target to $265.
Wall Street’s current consensus is a Hold, based on 19 Holds, 8 Buys, and 4 Sells, with an average price target of $187.33. Those ratings are likely to be revised as analysts digest Wednesday’s announcements.
GuruFocus values the stock at $175.34, putting it roughly 12.6% above its assessed intrinsic value at pre-market prices.
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