Qualcomm aims for $10 billion in car chips by 2029 amid handset sales drop

Qualcomm CEO Cristiano Amon is focusing on expanding the company’s automotive and data-center businesses as handset sales decline, according to observer.com. The company’s handset sales fell 26 percent to $5.1 billion in the quarter ending September 27, contributing to an 8 percent revenue drop to $10.3 billion compared to the previous year.

Automotive sales surged 89 percent to $1.99 billion in the same period, nearing $2 billion quarterly sales for the first time. Amon aims to grow these sectors fast enough to compensate for the lost handset revenue, which has been pressured by Apple moving more products to its own modems.

Qualcomm has set a target of $5 billion in data-center revenue for fiscal 2027 and a longer-term goal of over $15 billion by fiscal 2029. The company projects non-handset revenue to increase by more than 60 percent in fiscal 2027. Adjusted earnings for the upcoming quarter are forecasted between $2.15 and $2.35 per share.

Meanwhile, The Verge reports that AI data centers remain a contentious issue, with voters opposing expansion in recent elections. Tech companies like OpenAI and Amazon have pledged to work more closely with communities and cover energy costs. However, Democratic leaders are pushing for further restrictions and slowdowns on data center projects.

A bipartisan permitting bill advancing in Congress could speed up energy projects but may limit environmental reviews and community oversight, raising concerns among environmental advocates about increased reliance on fossil fuels. This legislative context is relevant as Qualcomm and others expand their data-center operations amid the AI boom.