Qualcomm is shifting focus from smartphone chips to AI and data center technology, with handset revenue down 20% but automotive and non-handset segments growing strongly. The company raised its non-handset revenue target to $40 billion by 2029, driven by AI and data center projects starting to generate revenue in the December quarter. However, rising costs and shrinking handset sales, especially from Apple and Android, weigh on profits. The December quarter will be crucial to prove Qualcomm's AI strategy can deliver growth and margin recovery amid market skepticism.
Qualcomm's strategic pivot to AI and data center technology comes as the stock trades at USD 175.82 on Pluang, down 0.64% as of Oct 14, 2026 18:12 WIB. Despite the shift, investor sentiment shows more selling pressure with 71% of order activity on Pluang being sells. The company’s market cap stands at $188.86 billion, reflecting significant scale amid ongoing transition challenges.
