Qualcomm pivots toward data centers to counter falling smartphone sales

Qualcomm is shifting its strategic focus to data center hardware to offset declining mobile device sales, according to The Verge AI. During its fourth-quarter earnings call for 2026, the company outlined plans to expand its presence in the artificial intelligence data center market. The strategy follows a decrease in smartphone sales of approximately 20 percent compared to 2025. [1]

To support its expansion into artificial intelligence infrastructure, Qualcomm announced partnerships with Amazon and Meta earlier this year, The Verge AI reported. The company forecasts data center revenue of approximately $650 million in the first quarter of 2027. Executives expect that data center chips will eventually account for 30 percent of Qualcomm's overall business. [1]

Qualcomm is an American multinational corporation based in San Diego, California, that designs semiconductors, mobile processors, and artificial intelligence hardware. The firm holds essential patents for global mobile standards including 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA. Through its Qualcomm Technologies subsidiary, the company produces Snapdragon processors that power devices worldwide. [2][3]

The company operates under a dual-segment corporate structure that includes Qualcomm Technology Licensing for intellectual property royalties and Qualcomm CDMA Technologies for chipset sales. In the first quarter of fiscal 2026, Qualcomm reported revenue of $12.25 billion, representing a 5 percent increase year over year, along with non-GAAP earnings per share of $3.50. [3]