Qualcomm unveils data center AI chips, Meta as CPU customer

Colleen Cabili

Thu, June 25, 2026 astatine 9:17 AM CDT 2 min read

Qualcomm unveiled a broad information halfway AI strategy astatine its 2026 Investor Day connected Wednesday, announcing that Meta Platforms would usage its caller Dragonfly C1000 cardinal processing units and raising its fiscal 2029 non-handset gross people to $40 billion, astir treble its anterior guidance.

Availability of the Dragonfly C1000 CPUs is expected successful 2028, astatine which constituent Meta has committed to deploying them, according to Barron's. Another plan successful the Dragonfly portfolio, the High Bandwidth Compute spot architecture, is slated for mid-2027 and has been tapped by Microsoft's Azure unreality unit.

Qualcomm acceptable a information halfway gross people of much than $15 cardinal by fiscal 2029, retired of a broader non-handset people of $40 billion. The institution besides targets much than $18 successful non-GAAP net per stock by that year. Handsets, which accounted for 72% of spot revenues successful fiscal 2025, are projected to shrink to astir one-third of that fig by fiscal 2029.

"We are defining Qualcomm's adjacent section arsenic we accelerate our borderline diversification strategy, present a broad roadmap for next-generation AI information centers, and germinate into a level company," Qualcomm President and CEO Cristiano Amon said successful a statement.

Trading up of Thursday's opening doorbell saw Qualcomm shares ascent 11%.

Smartphones, tablets, and gaming devices person agelong formed the halfway of Qualcomm's business, and the information halfway inaugural reflects the company's effort to trim its dependence connected those categories. The institution besides acceptable fiscal 2029 targets of $10 cardinal successful automotive revenues and much than $14 cardinal successful IoT revenues, and it identified a combined full addressable marketplace of astir $1.7 trillion crossed its people segments by 2030.

The capitalist time announcements came connected the aforesaid time Qualcomm agreed to get AI bundle startup Modular successful an all-stock woody valued astatine $3.92 billion. Modular builds bundle that allows AI models to tally crossed antithetic hardware architectures without requiring developers to rewrite codification for each processor, supporting CPUs, GPUs, NPUs, and customized spot architectures. Qualcomm said the acquisition is intended to deepen its bundle capabilities for information halfway AI inference, orchestration, and deployment.