Qualcomm Inc. (NASDAQ:QCOM) is accelerating its push beyond smartphones through AI data centers, custom silicon and new licensing agreements, although analysts remain divided over how much of that opportunity investors have already priced into the stock.
Qualcomm’s latest move is a multiyear patent agreement with Huawei Technologies covering 5G, artificial intelligence, computing and networking, Reuters reported on Monday.
The agreement includes Qualcomm’s purchase of certain Huawei U.S. patents and licenses tied to Huawei’s LogicFolding chip technology. Huawei expects the total value of its patent licensing agreements to exceed $6.9 billion after completing the deal, Bloomberg reported on Monday.
The stock is up over 5% in 2026, as Qualcomm posted muted performance amid weakness in the smartphone market, rising manufacturing costs, and declining high-margin Apple Inc. (NASDAQ:AAPL) revenue, which offset enthusiasm around the company’s aggressive expansion into AI data centers and automotive chips.
Qualcomm Builds Out Data Center Strategy
At its 2026 Investor Day in June, Qualcomm outlined plans to turn itself from a device-focused company into a broader device-and-cloud supplier.
CEO Cristiano Amon said, "It’s time to start a new chapter at Qualcomm."
The company expects data center revenue of at least $15 billion by fiscal 2029 and total non-handset revenue of at least $40 billion.
Qualcomm also announced a multigenerational partnership with Meta Platforms Inc. (NASDAQ:META). Its Dragonfly C1000 data center CPU will power Meta’s future servers, with production expected in the second half of 2028.
Executive Tony Pialis said Qualcomm has secured two major hyperscaler customers expected to generate "meaningful revenue" beginning at the end of 2026.
AWS Deal Adds Another AI Customer
Qualcomm also expanded its data center strategy in September with a partnership with Amazon.com Inc.’s (NASDAQ:AMZN) Amazon Web Services, covering custom AI inference silicon and optical connectivity.
Patrick Moorhead, CEO of Moor Insights & Strategy, called the agreement a "net-net huge $QCOM win," while noting that it does not guarantee $60 billion of orders.
Moorhead said Amazon adds evidence that Qualcomm’s diversification strategy is working as Apple-related product revenue declines, although sustained revenue and operating profit remain the next test.
Futurum Group CEO Daniel Newman called AWS a "highly capable partner" and said the deal delivers "much-needed good news" that should "quiet the skeptics" questioning Qualcomm’s data center push.
Counterpoint Sees Full-Stack AI Opportunity
In June, Counterpoint Research analyst Neil Shah said that he views Qualcomm more positively.
Shah said Qualcomm is becoming one of the few semiconductor companies that can offer AI infrastructure for data centers and edge devices. He sees a path toward $100 billion in annual recurring revenue within five to seven years.
Counterpoint highlighted Qualcomm’s NUVIA CPU technology, Alphawave Semi interconnect capabilities, Modular software assets, and AI accelerator roadmap as building blocks of a broader AI platform.
BofA Warns Competition Remains Intense
Also in June, BofA Securities analyst Vivek Arya remained cautious, maintaining an Underperform rating while raising his price forecast from $165 to $195.
Arya estimates Qualcomm could generate $10 billion in data center and AI sales in calendar 2028, but believes investors may already be pricing in much of that success.
"We believe Qualcomm is re-entering a fast-growing but hyper-competitive AI market full of large incumbents," Arya said, pointing to NVIDIA Corp. (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO) and Advanced Micro Devices Inc. (NASDAQ:AMD) as established competitors.
Qualcomm is also preserving its core licensing business, renewing its global patent agreement with Apple effective April 1, 2027.
QCOM Stock Price Activity: Qualcomm shares are trading lower by 1.38% at $182.31 at the time of publication on Monday, according to Benzinga Pro data.
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