Meta and Microsoft Azure adopt Qualcomm’s new data center AI chips, driving a revised revenue goal of $40 billion in non-handset segments.
Qualcomm raised its fiscal 2029 non-handset revenue target to $40 billion, nearly double its prior guidance, after unveiling new data center AI chips. Meta Platforms will deploy the Dragonfly C1000 CPUs in 2028, while Microsoft’s Azure cloud unit will use the High Bandwidth Compute chip architecture starting mid-2027.
The company also set a data center revenue goal of over $15 billion by fiscal 2029, part of a broader push to reduce reliance on handsets, which currently account for 72% of chip revenues. Qualcomm projects handsets will shrink to roughly one-third of revenue by fiscal 2029, with non-GAAP earnings per share targeted above $18.
Qualcomm shares surged 11% in premarket trading following the announcement, reflecting investor optimism about its diversification strategy and AI-driven growth in data centers.