During the presentation of its quarterly figures, Qualcomm announced that it is in advanced talks with a major hyperscaler about supplying new chips for use in data centers.
The chip designer is thus taking a new step toward the data center market, an ambition that has been around for some time within the company, reports The Register. CEO Cristiano Amon said that the growing role of AI inference in the cloud is accompanied by increasing demand for more efficient hardware, such as Arm-compatible CPUs. According to him, this is creating clear momentum for alternatives to traditional x86 processors.
The company is currently working on a general-purpose CPU specifically targeted at hyperscale customers. Qualcomm is also said to be building a head unit for inference clusters, including accelerator cards and complete rack systems. The previously announced acquisition of Alphawave Semi should contribute to this ambition. Alphawave’s technology should strengthen Qualcomm’s Oryon CPU and Hexagon NPU processors and accelerate overall development.
Multiple potential customers
According to Amon, Qualcomm is still in the early stages of its expansion into the data center segment, but discussions are already underway with several potential customers. If the collaboration with the hyperscaler leads to an agreement, the company expects to see its first revenues from these activities in fiscal year 2028.
In addition to this strategic move, Qualcomm also posted strong financial results. Quarterly revenue rose 10 percent year-on-year to $10.35 billion, while net income grew 25 percent to $2.666 billion. Revenue from smartphone components rose seven percent to $6.8 billion, while the automotive division grew 21 percent to $984 million. However, the biggest growth came from the Internet of Things division, which rose 24 percent to $1.68 billion.
Amon also indicated that Qualcomm’s position in the PC market is stabilizing. By 2026, more than 100 laptops with Qualcomm processors will be on the market, with the company already capturing approximately nine percent of the market segment above $600 in the US and the EU. He also sees growth opportunities in the smart glasses market, a segment in which Qualcomm currently plays a leading role.