News report 📈 Stocks 🌍 United States ISIN US7475251036

Qualcomm Targets $40B Non-Handset Revenue to Offset Apple Revenue Decline

Qualcomm shares face a pivotal test as the company shifts focus from mobile handsets to automotive and data center growth, targeting a $40 billion non-handset revenue run rate by fiscal 2029.

📅 September 21, 2026 🕐 1 min read

2 assets impacted (Stocks). Net bias: 1 Bullish, 0 Bearish, 1 Neutral. Strongest signal: QCOM ↑ 7/10 (55% confidence).

📊 Affected Assets (2)

QCOM

Bullish 🤖 55%

📆 Mid-term 🌍 US · Explicit

Qualcomm's automotive and data center growth is expected to offset Apple revenue decline, supporting a bullish outlook.

AAPL

Neutral 🤖 50%

📅 Short-term 🌍 US · Explicit

Apple's reduced reliance on Qualcomm is mentioned as a headwind for Qualcomm, but has neutral direct impact on Apple.

🎯 Key Takeaways

Automotive sales surged 61% year-over-year in fiscal Q3 2026, with annual run rates raised to $7 billion.
Qualcomm projects data center revenue to reach $5 billion by fiscal 2027 and $15 billion by fiscal 2029.
Apple product revenue is expected to drop 50% between the September and December quarters.

📝 Executive Summary

Qualcomm is pivoting its business model toward automotive and data center sectors to mitigate declining Apple revenue. Management expects non-handset revenue growth to exceed 60% in fiscal 2027, aiming to replace all of Apple's fiscal 2026 product contributions with new custom silicon wins.

❓ FAQ

How does Qualcomm plan to replace lost Apple revenue?

Qualcomm is aggressively scaling its automotive and data center segments, projecting non-handset revenue growth to jump from 24% in fiscal 2026 to over 60% in fiscal 2027.

What is the primary risk for Qualcomm's data center strategy?

The primary risk is execution; investors are waiting for the December quarter to see if the company can successfully deliver revenue from its two custom silicon hyperscaler wins.

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