Qualcomm announces AI data center CPU, signs Meta as first major customer

Qualcomm jumped 15% in after-hours trading Wednesday after raising its fiscal 2029 non-handset revenue target to $40 billion, nearly doubling its prior forecast of $22 billion. The chipmaker announced a new AI data center CPU and signed Meta as its first major customer for the product.

The guidance upgrade marks a sharp expansion beyond Qualcomm's core smartphone business, which accounted for two-thirds of product revenue in the most recent quarter. The company is positioning itself to capture data center AI infrastructure spending, a market dominated by Nvidia and AMD.

Meta's commitment as the inaugural customer validates Qualcomm's push into server chips designed for artificial intelligence workloads. The partnership gives Qualcomm a foothold in hyperscale data centers as tech giants race to build out AI computing capacity.

The $40 billion non-handset revenue target for fiscal 2029 represents an 82% increase from the previous $22 billion forecast, signaling management confidence in diversification beyond mobile devices.