This AI Chip Stock Just Signed Massive Deals With 3 Hyperscalers, and It Still Looks Like a Great Buy Right Now (Hint: Not Nvidia or Intel)

Qualcomm (QCOM) has locked in deals with three hyperscalers to supply data center chips, targeting $15 billion in revenue from the segment by 2029. The company projects its data center business will reach $5 billion by fiscal 2027, up from essentially zero today.

The chipmaker expects earnings per share to climb above $18 by 2029, representing 18% annualized growth from current levels. The expansion into data centers marks a significant diversification beyond Qualcomm's traditional mobile chip dominance, with hyperscaler partnerships providing a validated pathway into AI infrastructure spending.

At less than 18 times forward earnings, QCOM trades at a discount relative to its projected growth rate. The company's entry into data center AI chips positions it to capture share in a market currently dominated by Nvidia, with hyperscaler validation serving as proof of technical competency.