Qualcomm Doubles Non-Handset Revenue Target to $40 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Increased Non-Handset Revenue Target: Qualcomm raised its fiscal 2029 non-handset revenue target from $22 billion to $40 billion during its investor day, nearly doubling its previous goal, which underscores the company's commitment to diversifying away from smartphone dependency.
- Data Center Revenue Outlook: For the first time, Qualcomm set a target of over $15 billion in data center revenue by fiscal 2029, despite currently negligible earnings, reflecting its ambition in the data center market, particularly after securing a multi-year deal with Meta.
- Automotive Business Growth: Qualcomm's automotive revenue surged 38% year-over-year to a record $1.3 billion in fiscal Q2 2026, with management targeting $10 billion in annual revenue by fiscal 2029, indicating strong growth potential in the automotive sector.
- Market Competition Challenges: Despite ambitious targets, Qualcomm faces significant challenges in the competitive data center market dominated by Nvidia, with its AI accelerator not expected to begin commercial sampling until mid-2027, highlighting the hurdles in capturing market share.
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Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to fall
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 204.900
Low
165.00
Averages
197.14
High
225.00
Current: 204.900
Low
165.00
Averages
197.14
High
225.00
About QCOM
Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Qualcomm Plans New Data Center Chip Platform for Broader Applications
- Chip Platform Discussions: Qualcomm is engaging with smartphone, PC, and automotive manufacturers regarding its new data center chip platform, aiming to repurpose technology developed for AI servers into future mobile processors, thereby enhancing on-device AI capabilities.
- Architecture Launch Timeline: The first generation of the new architecture is expected to debut in data centers in 2027, with broader commercialization anticipated in 2028, marking Qualcomm's entry into the highly competitive data center processor market.
- Technological Innovation: Qualcomm's High Bandwidth Compute architecture improves data speed and flow by vertically stacking chips, a design intended not only for data centers but also for future applications in smartphones and PCs, enhancing user AI experiences.
- Market Sentiment Shift: Over the past 24 hours, retail sentiment for QCOM on Stocktwits shifted from 'bullish' to 'extremely bullish', with message volume surging nearly 300%, indicating strong investor confidence in Qualcomm's future developments.
See More
Qualcomm Doubles Non-Handset Revenue Target to $40 Billion
- Increased Non-Handset Revenue Target: Qualcomm raised its fiscal 2029 non-handset revenue target from $22 billion to $40 billion during its investor day, nearly doubling its previous goal, which underscores the company's commitment to diversifying away from smartphone dependency.
- Data Center Revenue Outlook: For the first time, Qualcomm set a target of over $15 billion in data center revenue by fiscal 2029, despite currently negligible earnings, reflecting its ambition in the data center market, particularly after securing a multi-year deal with Meta.
- Automotive Business Growth: Qualcomm's automotive revenue surged 38% year-over-year to a record $1.3 billion in fiscal Q2 2026, with management targeting $10 billion in annual revenue by fiscal 2029, indicating strong growth potential in the automotive sector.
- Market Competition Challenges: Despite ambitious targets, Qualcomm faces significant challenges in the competitive data center market dominated by Nvidia, with its AI accelerator not expected to begin commercial sampling until mid-2027, highlighting the hurdles in capturing market share.
See More
Qualcomm Significantly Raises 2029 Non-Handset Revenue Target
- Revenue Target Increase: Qualcomm has raised its 2029 non-handset revenue target from $22 billion to $40 billion, nearly doubling its previous goal, which reflects the company's strong commitment to diversification and reducing reliance on the smartphone market.
- Data Center Revenue Expectations: For the first time, Qualcomm has set a target of over $15 billion in data center revenue by 2029, marking its ambition in a highly competitive sector, despite current data center revenues being almost negligible.
- Meta Partnership Agreement: Meta has agreed to use Qualcomm's new processor in its data centers under a multi-year deal, with production starting in the second half of 2028, providing significant validation for Qualcomm's entry into the data center market.
- Automotive Business Growth: Qualcomm's automotive revenue rose 38% year-over-year to a record $1.3 billion in fiscal Q2 2026, with management targeting $10 billion in annual automotive revenue by 2029, indicating strong growth potential in the automotive sector.
See More
Qualcomm Nearly Doubles Non-Handset Revenue Target
- Revenue Target Increase: Qualcomm raised its fiscal 2029 non-handset revenue target from $22 billion to $40 billion during its investor day, nearly doubling its ambition to diversify away from smartphone dependency, reflecting a strategic shift in its business model.
- Data Center Revenue Expectations: For the first time, the company set a target of over $15 billion in data center revenue, indicating its commitment to entering a highly competitive market, although current data center revenue is negligible, highlighting the challenges ahead in gaining market share.
- Key Customer Partnership: Meta Platforms has agreed to a multi-year deal to utilize Qualcomm's new processor in its data centers, with production starting in the second half of 2028, providing significant validation for Qualcomm's ambitions in the data center space.
- Automotive Business Growth: Qualcomm's automotive revenue surged 38% year-over-year to $1.3 billion in fiscal Q2 2026, with management targeting $10 billion in annual revenue by fiscal 2029, showcasing its strong growth potential in the automotive sector.
See More
U.S. Stocks Close Lower on Friday, Chipmakers Weigh on Market
- Market Decline: The S&P 500 and Nasdaq 100 fell by 0.05% and 1.09% respectively on Friday, reaching two-week lows, indicating market sensitivity to the weak performance of chipmakers, which could undermine investor confidence.
- Chipmaker Sell-off: The significant drop in Samsung Electronics and SK Hynix shares led to a more than 5% decline in South Korea's Kospi Index, triggering a global downturn in semiconductor stocks and exacerbating market uncertainty.
- Oil Price Impact: WTI crude oil prices fell over 3% to a four-month low on Friday, which helps lower inflation expectations and supports the stock market, but also reflects potential slowdowns in global economic growth.
- Consumer Sentiment Revision: The University of Michigan's consumer sentiment index was revised upward by 0.6 to 49.5, although still below the expected 50.0, indicating a cautious consumer outlook that may affect future spending.
See More
High Options Trading Volume for Qualcomm and Replimune
- Qualcomm Options Volume: Qualcomm (QCOM) saw an options trading volume of 126,866 contracts today, representing approximately 12.7 million shares, which is about 57.5% of its average daily trading volume of 22 million shares over the past month, indicating strong market interest in its future performance.
- Bullish Call Options: Notably, the $200 strike call option expiring on June 26, 2026, has seen 6,196 contracts traded today, representing around 619,600 underlying shares, suggesting that investors are increasingly optimistic about Qualcomm's stock price appreciation.
- Replimune Options Activity: Replimune (REPL) has recorded an options trading volume of 35,327 contracts today, equivalent to approximately 3.5 million shares, which accounts for about 56.1% of its average daily trading volume of 6.3 million shares over the past month, reflecting investor confidence in its growth potential.
- Call Options Interest: Particularly, the $15 strike call option expiring on August 21, 2026, has seen a trading volume of 5,896 contracts today, representing approximately 589,600 shares, indicating a bullish sentiment among market participants regarding Replimune's stock price trajectory.
See More
Qualcomm Plans New Data Center Chip Platform for Broader Applications
- Chip Platform Discussions: Qualcomm is engaging with smartphone, PC, and automotive manufacturers regarding its new data center chip platform, aiming to repurpose technology developed for AI servers into future mobile processors, thereby enhancing on-device AI capabilities.
- Architecture Launch Timeline: The first generation of the new architecture is expected to debut in data centers in 2027, with broader commercialization anticipated in 2028, marking Qualcomm's entry into the highly competitive data center processor market.
- Technological Innovation: Qualcomm's High Bandwidth Compute architecture improves data speed and flow by vertically stacking chips, a design intended not only for data centers but also for future applications in smartphones and PCs, enhancing user AI experiences.
- Market Sentiment Shift: Over the past 24 hours, retail sentiment for QCOM on Stocktwits shifted from 'bullish' to 'extremely bullish', with message volume surging nearly 300%, indicating strong investor confidence in Qualcomm's future developments.
See More
Qualcomm Doubles Non-Handset Revenue Target to $40 Billion
- Increased Non-Handset Revenue Target: Qualcomm raised its fiscal 2029 non-handset revenue target from $22 billion to $40 billion during its investor day, nearly doubling its previous goal, which underscores the company's commitment to diversifying away from smartphone dependency.
- Data Center Revenue Outlook: For the first time, Qualcomm set a target of over $15 billion in data center revenue by fiscal 2029, despite currently negligible earnings, reflecting its ambition in the data center market, particularly after securing a multi-year deal with Meta.
- Automotive Business Growth: Qualcomm's automotive revenue surged 38% year-over-year to a record $1.3 billion in fiscal Q2 2026, with management targeting $10 billion in annual revenue by fiscal 2029, indicating strong growth potential in the automotive sector.
- Market Competition Challenges: Despite ambitious targets, Qualcomm faces significant challenges in the competitive data center market dominated by Nvidia, with its AI accelerator not expected to begin commercial sampling until mid-2027, highlighting the hurdles in capturing market share.
See More
Qualcomm Significantly Raises 2029 Non-Handset Revenue Target
- Revenue Target Increase: Qualcomm has raised its 2029 non-handset revenue target from $22 billion to $40 billion, nearly doubling its previous goal, which reflects the company's strong commitment to diversification and reducing reliance on the smartphone market.
- Data Center Revenue Expectations: For the first time, Qualcomm has set a target of over $15 billion in data center revenue by 2029, marking its ambition in a highly competitive sector, despite current data center revenues being almost negligible.
- Meta Partnership Agreement: Meta has agreed to use Qualcomm's new processor in its data centers under a multi-year deal, with production starting in the second half of 2028, providing significant validation for Qualcomm's entry into the data center market.
- Automotive Business Growth: Qualcomm's automotive revenue rose 38% year-over-year to a record $1.3 billion in fiscal Q2 2026, with management targeting $10 billion in annual automotive revenue by 2029, indicating strong growth potential in the automotive sector.
See More
Qualcomm Nearly Doubles Non-Handset Revenue Target
- Revenue Target Increase: Qualcomm raised its fiscal 2029 non-handset revenue target from $22 billion to $40 billion during its investor day, nearly doubling its ambition to diversify away from smartphone dependency, reflecting a strategic shift in its business model.
- Data Center Revenue Expectations: For the first time, the company set a target of over $15 billion in data center revenue, indicating its commitment to entering a highly competitive market, although current data center revenue is negligible, highlighting the challenges ahead in gaining market share.
- Key Customer Partnership: Meta Platforms has agreed to a multi-year deal to utilize Qualcomm's new processor in its data centers, with production starting in the second half of 2028, providing significant validation for Qualcomm's ambitions in the data center space.
- Automotive Business Growth: Qualcomm's automotive revenue surged 38% year-over-year to $1.3 billion in fiscal Q2 2026, with management targeting $10 billion in annual revenue by fiscal 2029, showcasing its strong growth potential in the automotive sector.
See More
U.S. Stocks Close Lower on Friday, Chipmakers Weigh on Market
- Market Decline: The S&P 500 and Nasdaq 100 fell by 0.05% and 1.09% respectively on Friday, reaching two-week lows, indicating market sensitivity to the weak performance of chipmakers, which could undermine investor confidence.
- Chipmaker Sell-off: The significant drop in Samsung Electronics and SK Hynix shares led to a more than 5% decline in South Korea's Kospi Index, triggering a global downturn in semiconductor stocks and exacerbating market uncertainty.
- Oil Price Impact: WTI crude oil prices fell over 3% to a four-month low on Friday, which helps lower inflation expectations and supports the stock market, but also reflects potential slowdowns in global economic growth.
- Consumer Sentiment Revision: The University of Michigan's consumer sentiment index was revised upward by 0.6 to 49.5, although still below the expected 50.0, indicating a cautious consumer outlook that may affect future spending.
See More
High Options Trading Volume for Qualcomm and Replimune
- Qualcomm Options Volume: Qualcomm (QCOM) saw an options trading volume of 126,866 contracts today, representing approximately 12.7 million shares, which is about 57.5% of its average daily trading volume of 22 million shares over the past month, indicating strong market interest in its future performance.
- Bullish Call Options: Notably, the $200 strike call option expiring on June 26, 2026, has seen 6,196 contracts traded today, representing around 619,600 underlying shares, suggesting that investors are increasingly optimistic about Qualcomm's stock price appreciation.
- Replimune Options Activity: Replimune (REPL) has recorded an options trading volume of 35,327 contracts today, equivalent to approximately 3.5 million shares, which accounts for about 56.1% of its average daily trading volume of 6.3 million shares over the past month, reflecting investor confidence in its growth potential.
- Call Options Interest: Particularly, the $15 strike call option expiring on August 21, 2026, has seen a trading volume of 5,896 contracts today, representing approximately 589,600 shares, indicating a bullish sentiment among market participants regarding Replimune's stock price trajectory.
See More
