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Qualcomm Just Revealed Its Mystery Big Tech Customer—and Its Stock Is Soaring
Updated June 25, 2026, 8:21 am EDT / Original June 25, 2026, 5:30 am EDT
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Qualcomm jumps after raising its fiscal 2029 non-handset revenue target to $40 billion.
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Qualcomm reveals two huge data-center customers, supporting its diversification from smartphones.
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Meta Platforms will use Dragonfly C1000 CPUs by 2028, and Microsoft will use High Bandwidth Compute architecture by mid-2027.
Qualcomm stock was soaring Thursday after the chip maker raised its non-handset sales target and revealed that Facebook parent Meta Platforms would be using a new data-center chip.
Shares jumped 11% to $218.60 ahead of the opening bell. Futures tracking the S&P 500 gained 0.7% after stellar earnings from memory-chip maker Micron Technology helped revive the AI trade.
Qualcomm late Wednesday raised its fiscal 2029 non-handset revenue target to $40 billion, almost double its previous guidance. The company also expects $15 billion of data-center sales by that point.
Just hours earlier, Qualcomm revealed at an investor day that Meta would use its Dragonfly C1000 central processing units when they become available in 2028.
Microsoft’s Azure cloud division will use another of Qualcomm’s new products, its High Bandwidth Compute chip architecture, expected in mid-2027.
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The flurry of announcements, coupled with Micron’s strong results, could help revive faith in the AI trade. Chip stocks have struggled in recent days due to worries about how long so-called hyperscalers such as Meta and Microsoft can maintain their aggressive data-center spending.
Qualcomm’s push into data centers comes as it seeks to diversify away from the smartphones, tablets, and gaming devices powered by its chips. Qualcomm expects handsets to make up just one-third of its revenue by fiscal 2029, down from 72% in fiscal 2025.
Some analysts still aren’t convinced the diversification strategy will pay off. “While data-center targets exceeded our expectations, we think it’s early days,” said KeyBanc’s John Vinh, who rates shares Sector Weight.
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Susquehanna analyst Christopher Rolland raised his price target for the stock to $190 from $160 but maintained his Neutral rating, citing “headwinds in the mobile market.”
Write to George Glover at george.glover@dowjones.comExternal link
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