Qualcomm Stock Soars on Data-Center Chip Expansion
Qualcomm's stock saw a significant boost of 5% on Tuesday after analyst Cody Acree from StoneX gave the company fresh attention. The surge in interest is attributed to Qualcomm's growing presence in data-center chips, providing investors with an additional growth avenue beyond smartphones.
The collaboration between Qualcomm and Amazon on customized AI silicon and high-speed optical connectivity for data centers has been a significant development. This partnership not only expands Qualcomm's capabilities but also opens up new revenue streams for the company.
Qualcomm expects its data-center business to reach $5 billion in fiscal 2027 revenue and exceed $15 billion by fiscal 2029. Additionally, the company projects total non-handset revenue of $40 billion by fiscal 2029 as it diversifies across automotive, IoT, and other markets.
However, Qualcomm's handset business faces pressure, with a 20% year-over-year decline in fiscal third-quarter handset revenue to $5.09 billion, according to company data cited by analysts.