Qualcomm Inc. Surges on Data‑Center Expansion and Meta Partnership
Qualcomm’s shares rallied 15 % on June 27 after the company announced a bold new revenue trajectory and secured a multi‑year chip supply agreement with Meta Platforms. The announcement lifted the company’s 2029 non‑handset revenue target to $40 billion—a sharp increase from the $22 billion baseline—and set a $15 billion data‑center sales goal. Investors responded with a surge in trading volume, propelling the stock to a new 52‑week high of $259.92.
Meta Deal Drives Market Sentiment
The partnership with Meta Platforms, one of the world’s largest data‑center operators, positions Qualcomm to supply custom CPUs and AI accelerators for the company’s expanding infrastructure. This move validates Qualcomm’s strategic pivot from mobile‑centric revenues toward high‑margin data‑center hardware. Analysts from Barclays and Morgan Stanley have both acknowledged the potential upside, with Barclays raising its price target while maintaining a cautious stance, and Morgan Stanley upgrading the stock to “Hold” following the Investor Day disclosures.
Data‑Center Revenue Target and AI Focus
Qualcomm’s FY29 target of $40 billion non‑handset revenue, coupled with a $15 billion data‑center sub‑target, underscores a clear shift toward artificial‑intelligence (AI) workloads. The company has outlined plans to extend its next‑generation chip technology—initially developed for data‑center use—to smartphones, signaling a dual‑track strategy that leverages its core expertise in mobile silicon while tapping the growing demand for on‑device AI.
Analyst Coverage and Market Outlook
- Barclays: While bullish on the data‑center strategy, Barclays remains bearish overall, citing the “chips don’t exist yet” caveat and the need for execution speed.
- DZ Bank: Maintains a “Buy” rating with a target price of $265, reflecting confidence in Qualcomm’s long‑term growth trajectory.
- Morgan Stanley: Upgraded the stock to “Hold”, highlighting the company’s robust AI roadmap and the strategic importance of its Meta partnership.
Financial Snapshot
| Metric | Value |
|---|---|
| Market Cap | $208.07 billion |
| Price | $189.39 (close, 2026‑06‑25) |
| P/E | 21.47 |
| 52‑Week High | $259.92 |
| 52‑Week Low | $121.99 |
Forward‑Looking Perspective
Qualcomm’s recent disclosures signal a decisive shift from a handset‑driven business model to a diversified technology portfolio anchored by data‑center silicon and AI capabilities. The Meta partnership provides a credible launchpad for the company’s next‑generation CPU line, while the planned migration of data‑center chip designs to mobile platforms could unlock new revenue streams and enhance competitive differentiation.
If Qualcomm can accelerate the delivery of these next‑gen chips and secure broader adoption among other cloud and edge players, the company is poised to become a leading supplier in the rapidly expanding AI infrastructure market. The current 15 % surge reflects investor optimism, and the $265 target price from DZ Bank suggests ample upside potential, contingent on execution and market conditions.
