QCOM · Earnings call · 2026Q3T · Full report
Data Center Revenue Outlook
QUALCOMM INC/DE · 2026-11-04 · Importance 75 · Surprise 60 · In source text
Qualcomm expects fiscal 2027 data center revenue of $5 billion, with revenue above $650 million in the first fiscal quarter and an approximately $7 billion exit run rate. Management said two hyperscaler customers will contribute at significant scale to the fiscal 2027 target, with the majority of the $5 billion coming from those customers; fiscal 2027 revenue is primarily custom silicon for AI accelerators, with connectivity also contributing. The company expects fiscal 2028 to start at a $7 billion run rate and deliver strong year-over-year growth, while its fiscal 2029 target is $15 billion, including custom silicon, expanded connectivity, CPU, and AI accelerator revenue. The Amazon Web Services strategic agreement has a potential revenue opportunity of up to $60 billion over 10 years, and management said supply, rather than demand, is expected to constrain revenue upside above the fiscal 2027 target.
Key facts
- QUALCOMM INC/DE targets data center revenue of $5 billion in fiscal 2027 and $15 billion in fiscal 2029.
- QUALCOMM INC/DE expects data center revenue to scale through fiscal 2027 and exit the year at a $7 billion run rate.
- QUALCOMM INC/DE expected fiscal 2027 data center revenue to ramp across the year from more than $650 million in fiscal Q1, with a $5 billion fiscal-year target and an approximately $7 billion exit rate.
- QUALCOMM INC/DE expects fiscal 2028 data center revenue to start from a $7 billion run rate and grow strongly year over year.
- QUALCOMM INC/DE said its fiscal 2027 data center revenue ramp would be driven mostly by custom silicon for the main AI accelerator at two hyperscaler customers, with connectivity the next material category.
- QUALCOMM INC/DE expects its fiscal 2029 $15 billion data center revenue to include custom silicon, expanded connectivity, CPU, and AI accelerator revenue.
- QUALCOMM INC/DE reiterated its fiscal 2027 data center revenue target of $5 billion.
- QUALCOMM INC/DE expects data center revenue to exceed $650 million in the December 2026 quarter.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | committed | — | QUALCOMM INC/DE expected fiscal 2027 data center revenue to ramp across the year from more than $650 million in fiscal Q1, with a $5… |
| revenue | positive | probable | — | QUALCOMM INC/DE expects fiscal 2028 data center revenue to start from a $7 billion run rate and grow strongly year over year. |
| revenue | positive | committed | — | QUALCOMM INC/DE expected fiscal Q1 2027 QCT data center revenue to exceed $650 million, driven by shipments to custom silicon customers. |