Qualcomm Inc. (NASDAQ:QCOM) CEO Cristiano Amon said the company’s entry into the AI data center market is the “next chapter” of its diversification strategy, calling it a “potential multibillion-dollar revenue opportunity” during a stellar fourth-quarter earnings call.
Check out QCOM's stock price here.
QCOM Expects Data Center Revenue From FY’27 Onwards
Amon confirmed Qualcomm is accelerating its data center plans, now expecting material revenue to begin in fiscal 2027, a full year earlier than previously projected.
The company named HUMAIN as its first customer for its new AI200 and AI250 inference accelerators.
“We’re very excited. I think this is the next chapter of… changing the company, diversifying the company, expanding our IP,” Amon told analysts.
Power-Efficient AI Inference: A Multibillion-Dollar Opportunity
Amon emphasized that Qualcomm is focused on the growing need for power-efficient AI inference, which handles the workload of running AI applications rather than just training them.
“It’s clear the market wants competition for this,” Amon stated, outlining Qualcomm’s right to win. “I think it’s all going to be about generating the most amount of tokens with the least amount of power, and that’s our right to play.”
Amon later quantified the new venture’s high-stakes potential: “Success in this area, I think, presents to us a potential multibillion-dollar revenue opportunity in a couple of years.”
QCOM Marks Its 10th Consecutive Earnings Beat
The announcement came as Qualcomm reported fourth-quarter revenue and earnings that sailed past Wall Street estimates, marking its tenth consecutive earnings beat.
This ambitious expansion is supported by robust health in its existing businesses. The company reported revenue of $11.3 billion and non-GAAP EPS of $3, easily beating consensus. Its QCT division, which includes chips, saw record automotive revenue surpassing $1 billion for the first time.
The company also issued record-high guidance for the first quarter, signaling strong momentum. Qualcomm guided for first-quarter revenue between $11.8 billion and $12.6 billion, with EPS of $3.30 to $3.50, both significantly above analyst expectations.
Qualcomm Underperforms Nasdaq In 2025
QCOM ended 3.98% higher at $179.72 apiece but declined 2.62% in after-hours on Wednesday. While it has advanced 16.97% year-to-date, the returns were lower than the broader Nasdaq 100 index, with a 22.14% gain. Over the year, QCOM was up just 3.89%.
It maintains a stronger price trend over the long, short, and medium terms, with a moderate quality ranking. Additional performance details, as per Benzinga's Edge Stock Rankings, are available here.
While the S&P 500, Dow Jones, and Nasdaq 100 closed higher on Wednesday, the futures were lower on Thursday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
