Qualcomm Inc. (NASDAQ:QCOM) stock climbed in Thursday’s premarket session after the chipmaker unveiled an aggressive expansion into the highly lucrative AI data center market and set ambitious long-term revenue targets at its 2026 Investor Day, reinforcing investor optimism over its push to diversify beyond its stagnating smartphone business.
Raised Financial Targets Through Fiscal 2029
Qualcomm raised its fiscal 2029 non-handset revenue target to $40 billion, which represents an approximate twofold increase from its prior fiscal 2029 target.
The company updated targets for its QCT semiconductor business, projecting automotive revenues at $10 billion and internet of things revenues at more than $14 billion by fiscal 2029. Additionally, Qualcomm targets more than $18 non-GAAP diluted EPS for fiscal 2029.
Data Center Strategy And Meta Agreement
The company unveiled a data center AI infrastructure strategy targeting more than $15 billion in revenue by fiscal 2029. As part of this expansion, Qualcomm Technologies, Inc. announced a strategic multi-generation agreement to supply data center CPUs for Meta Platforms, Inc. (NASDAQ:META).
The first-generation Qualcomm Dragonfly C1000 CPU will power Meta’s next-generation server fleet, with production scheduled to begin in the second half of 2028.
Hugging Face Relationship Expansion
Separately, Qualcomm said it has expanded its partnership with Hugging Face to accelerate open, developer-focused artificial intelligence across devices and cloud infrastructure.
The collaboration will integrate Qualcomm’s Snapdragon, Dragonwing and Dragonfly platforms with Hugging Face’s ecosystem of more than 3 million AI models and 16 million developers.
The companies plan to simplify AI deployment from edge devices to data centers, support hybrid AI workloads and develop agentic AI orchestration across on-device and cloud environments.
As part of the partnership, Hugging Face plans to bring its storage and inference services to Qualcomm Dragonfly-powered data centers. Qualcomm customers using supported devices and cloud platforms will also gain access to Hugging Face PRO.
Qualcomm to Acquire Modular
On Wednesday, Qualcomm agreed to acquire Modular Inc., adding an AI-native software platform that enables AI models to run across CPUs, GPUs, NPUs, and custom chips.
The deal is expected to expand Qualcomm’s data center AI opportunity, improve performance and efficiency across its AI hardware and support a broader open developer ecosystem.
Qualcomm Stock: Key Levels and Momentum Indicators
From a trend standpoint, Qualcomm is still in a bullish structure: it’s trading about 10% above its 50-day SMA ($196.16) and roughly 29%-30% above its 200-day SMA ($167.55), and the 50-day SMA remains above the 200-day SMA after the golden cross in May.
The near-term wrinkle is that price is about 2.6% below the 20-day SMA ($221.63), which frames this premarket jump as an attempt to reclaim the short-term trend line rather than a clean continuation.
Key levels are straightforward: the stock’s May swing high/52-week high zone sits overhead, while a prior buyer-defense area is well below current trade, leaving room for volatility if the gap doesn’t stick.
- Key Resistance: $248
- Key Support: $190.50
QCOM Stock Price Activity: Qualcomm shares were up 10.53% at $218.20 during premarket trading on Thursday, according to Benzinga Pro data.
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