Qualcomm is betting big on data centers as smartphone sales sink
With smartphone sales tanking by around 20 percent compared to 2025, Qualcomm is looking to data centers to help boost its bottom line. During its Q4 2026 earnings call, the company laid out its plans to make a splash in the AI data center business, through partnerships with comp
Qualcomm's strategic shift towards data centers is a telling sign of the times. As smartphone sales continue to decline, tech giants are scrambling to find new revenue streams. Data centers, particularly those focused on AI, represent a high-growth area that Qualcomm is keen to tap into. By doing so, the company is diversifying its business and reducing its dependence on the increasingly saturated smartphone market.
This move is also a testament to the growing importance of AI in the tech industry. As AI models become more complex and pervasive, the demand for computing power and data storage is skyrocketing. Qualcomm's partnerships in the AI data center space position it to capitalize on this trend. Moreover, the company's expertise in chip design and manufacturing will be crucial in developing the specialized hardware needed to support AI workloads.
What's next to watch is how Qualcomm's foray into data centers will play out in terms of execution and competition. The company will need to contend with established players like NVIDIA, AMD, and Intel, which have already made significant inroads in the data center market. Additionally, it's worth keeping an eye on Qualcomm's partnerships and product roadmap, as these will be key indicators of the company's success in this new venture.
Originally reported by theverge.com. IPNews adds analysis for ai & agent economy readers.