Qualcomm Just Nearly Doubled Its Most Important Growth Target, Confirming Its Place as a Key AI Stock

Qualcomm raised its non-handset revenue target to $40 billion by fiscal 2029, nearly doubling its previous goal, and set a new $15 billion data center revenue target. The aggressive expansion signals the chipmaker's push beyond its smartphone core into AI infrastructure and diversified markets.

The company locked in a multi-year deal with Meta for its Dragonfly C1000 processor, giving it a foothold in the data center space currently dominated by Nvidia. The Meta partnership provides concrete validation for Qualcomm's server chip ambitions, though the competitive gap with Nvidia remains substantial.

At 17x earnings, Qualcomm trades at a discount to many AI-focused peers, embedding skepticism about execution risk. The $40 billion non-handset revenue figure represents a major leap from the company's previous diversification targets and would fundamentally reshape its business mix. Success hinges on winning additional hyperscale customers beyond Meta and proving the Dragonfly C1000 can compete on performance and economics in inference workloads.