Qualcomm (NASDAQ: QCOM) has quietly secured one of the semiconductor industry’s most consequential commercial agreements, a partnership with Amazon carrying a potential $60 billion revenue opportunity across the next decade.
That deal, alongside a separate agreement with Meta Platforms, sits at the heart of Qualcomm’s aggressive push into artificial intelligence data center infrastructure, a market the company believes could generate more than $15 billion in annual revenue by fiscal 2029.
The scale of that ambition becomes clearer when set against the company’s current non-handset revenue base of $13.1 billion, recorded across automotive and Internet of Things chip sales in fiscal 2026.
Qualcomm has now doubled its fiscal 2029 non-handset revenue target to $40 billion, roughly twice what the company had previously projected, with automotive and data center businesses driving the bulk of that expansion.
The automotive segment alone carries a design-win pipeline valued at $65 billion, and the company has set a target of $10 billion in automotive revenues by fiscal 2029.
On the data center side, Qualcomm expects that segment to contribute $5 billion in fiscal 2027 revenue, then exit that year with an annualized run rate of $7 billion, pointing toward steeper growth in subsequent years.
Management has set a non-GAAP earnings per share target of more than $18 for fiscal 2029, a figure that would represent a dramatic departure from the company’s current earnings trajectory.
One analyst framework values the stock at $491 within three years, applying a 30x earnings multiple consistent with the broader Nasdaq-100 index and using an EPS estimate of $16.36 as the baseline.
That projection would represent a 187% gain from Qualcomm’s present share price, though it depends heavily on the company executing its diversification strategy on schedule.
The urgency of that shift is underscored by the pressure Qualcomm continues to face in its core handset business, where fiscal 2026 revenue fell 2% year-over-year to $43.2 billion amid a broader contraction in global smartphone shipments.
Qualcomm’s stock has moved essentially sideways through 2026, reflecting investor skepticism about near-term earnings while the longer-term transition to automotive and data center markets remains a work in progress.
The non-handset revenue figure has nearly doubled within two years, suggesting the diversification effort is advancing faster than many observers had anticipated when the strategy was first outlined.
Whether the company can sustain that momentum through fiscal 2029 will determine whether Qualcomm’s current valuation proves to be a prolonged discount or simply a reflection of genuine structural risk.
