Qualcomm Inc (NASDAQ:QCOM) stock soared on Wednesday as the company shared new details about its diversification efforts beyond handsets in an Investor Day presentation. Here are the company’s updates, including a new partnership with Meta Platforms (NASDAQ:META).
Qualcomm’s New Chapter
On Wednesday, Qualcomm outlined its new diversification efforts with a key data center strategy. The new growth strategy adds to efforts with AI devices, automobiles, and robotics, in an effort to lower its reliance on handset revenue.
"It’s time to start a new chapter at Qualcomm," Qualcomm CEO Cristiano Amon told the crowd at the 2026 Investor Day. "We’ve built a diversified edge leader across multiple end markets."
Amon said the company is building a data center platform, providing a "comprehensive portfolio of solutions." Perhaps minimizing the noise of Qualcomm being late to the data center sector, Amon said, there’s still a big opportunity.
"It’s never too late for Qualcomm. This is a market that moves very, very fast. If you have technology leadership, there’s room for you."
Amon said Qualcomm will be a full-stack player across physical AI, compute and more.
"At the end of the day, we have seen in our industry, open horizontal systems will win. And I think that’s kind of our bet."
Tony Pialis, EVP & GM Data Center at Qualcomm, said the company has won two major hyperscaler deals that will bring in "meaningful revenue" starting at the end of this year.
"This is a race to the forefront and we have the technology pieces needed to win," Pialis said.
Qualcomm Chief Financial Officer Akash Palkhiwala said the third transformation for the company starts now, going from a devices company to a device and cloud company.
"We went from being a smartphone company to all edge devices – auto, personal AI, networking, industrial, PC – all of these devices we are a leader in now," Palkhiwala said.
Meta Partnership
A new strategic partnership for Data Center CPUs between Qualcomm and Meta was announced Wednesday. Meta Platforms CEO Mark Zuckerberg highlighted the partnership with a video presentation at the event.
Qualcomm’s data center CPU, the Qualcomm Dragonfly C1000, will power Meta’s next-generation server fleet, according to the companies.
The company’s products will be in production in the second half of 2028 and used in future data center capacity expansions by Meta.
"We designed our data center CPU to deliver leading performance per core and breakthrough in power efficiency for large scale data center deployments, and this multi-generation agreement with Meta is a significant validation of that approach," Amon said.
In the video presentation, Zuckerberg said Meta’s goal is to "deliver personal superintelligence to everyone in the world."
"We need to innovate with how we get the power, we need to scale it, and make it accessible to everyone. So that’s why our work with Qualcomm is so critical," Zuckerberg said.
Zuckerberg said the partnership will "help put personal superintelligence into billions of people’s hands."
"There’s a lot more to come and I’m looking forward to building together for a long time."
Qualcomm’s Updated Guidance
At the investor day, the company provided an updated look at its 2029 guidance. This includes having non-handset revenue of $40 billion or more by fiscal 2029, broken down as follows:
- Automotive revenue: $10 billion
- IoT revenues: $14 billion or more
- Industrial, networking and robotics: $8 billion
- Personal AI and Compute: $6 billion
- Data Center revenues: $15 billion or more
The new guidance makes handsets around one-third of QCT revenue by fiscal 2029.
Palkhiwala said automotive, IoT and data center represent a total addressable market size of $1.7 trillion for the company.
"As we diversify more, as we launch new products, a very large portion of this becomes addressable to us," Palkhiwala said.
Qualcomm Stock Price Action
Qualcomm shares are up 3.50%, trading at $204.32 on Thursday, versus a 52-week trading range of $121.99 to $259.92. Qualcomm stock is up 20.4% year-to-date in 2026.
Photo Courtesy Qualcomm
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