Qualcomm Guidance Lifts 2029 Targets, Data-Center Push
Qualcomm guidance raised fiscal 2029 non-handset target to $40 billion and outlined a Meta CPU data-center plan, shifting investor positioning and flow.
KEY TAKEAWAYS
- Raised fiscal 2029 non-handset revenue target to $40 billion.
- Unveiled a data-center strategy targeting more than $15 billion by fiscal 2029.
- Confirmed a Meta partnership for the Dragonfly C1000 CPU with production expected in 2028.
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Qualcomm Inc. (QCOM) raised its fiscal 2029 non-handset revenue target to $40 billion at its June 24, 2026 Investor Day, unveiling a data-center strategy and a Meta CPU partnership as part of its diversification beyond smartphones.
2029 Targets and Business Outlook
Qualcomm set new long-term goals across several segments. It raised its automotive revenue target to $10 billion by fiscal 2029 and expanded its automotive design-win pipeline to $65 billion. The company also set a fiscal 2029 Internet of Things (IoT) target exceeding $14 billion, with about $8 billion from industrial, networking, and robotics, and $6 billion from personal AI and compute. Qualcomm expects more than $18 in non-GAAP earnings per share (EPS) for that year. These milestones reflect management’s effort to shift growth beyond handset chips.
Data-Center Strategy and Meta Partnership
Qualcomm outlined a data-center plan targeting more than $15 billion in revenue by fiscal 2029, with an interim goal of $5 billion in fiscal 2027. It confirmed a partnership with Meta for its new Dragonfly C1000 data-center CPU, with production expected in 2028. Qualcomm presented this combination of product roadmap and a named hyperscaler customer as evidence of commercial traction in AI infrastructure.
Modular Acquisition and Strategic Implications
The company announced an agreement to acquire Modular Inc., with the transaction expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals. Qualcomm positioned the acquisition alongside its long-range targets as part of a broader strategy to build sizable businesses outside the handset market.
Together, the raised guidance, data-center commitments, and Meta partnership outline a multi-pronged plan to diversify revenue streams. Qualcomm aims to assemble multiple multibillion-dollar businesses in automotive, IoT, and AI infrastructure rather than rely primarily on smartphone chip sales. Execution on product development, customer wins, and the Modular acquisition will determine whether the company achieves this revenue mix shift.
