Qualcomm just told Wall Street it wants to be a very different company by the end of the decade, and Wall Street apparently liked what it heard. The stock surged more than 13% after the chipmaker’s Investor Day on June 24, where it laid out a vision that repositions it from “the company in your phone” to a serious contender in AI data center infrastructure.

The headline number: Qualcomm raised its fiscal 2029 non-handset revenue target to $40 billion, doubling its previous goal. More than $15 billion of that is expected to come from its data center business alone.

Beyond the smartphone

By fiscal 2029, mobile handset revenue is projected to account for roughly one-third of QCT revenues. The remaining two-thirds will come from automotive, IoT, and the big new bet: AI data center accelerators.

Qualcomm is launching two key products to back up the ambition. The AI200 accelerator is set for release in 2026, followed by the AI250 in 2027. Both are designed specifically for generative AI workloads.

A deal with ByteDance for AI chips was announced in May 2026, and Qualcomm highlighted collaborations with Humain during the Investor Day presentation. Initial hyperscaler designs have already shipped.

Taking on Nvidia and AMD

Qualcomm’s entry into the data center market dates back to around October 2025, when it began offering rack-scale solutions. The trajectory from initial offerings to a $15 billion revenue target in roughly four years is aggressive by any measure.

What this means for investors

The stock’s immediate reaction tells a clear story. Investors are pricing in the possibility that Qualcomm successfully transforms itself from a mobile-first chipmaker into a diversified semiconductor powerhouse. A 13% single-day move for a company of Qualcomm’s size reflects genuine conviction, not just speculative froth.

But there are risks worth watching. Qualcomm needs to prove that its AI200 and AI250 chips can win real design wins at scale, not just with early partners but across the broader market. Nvidia’s CUDA software ecosystem remains a formidable moat that hardware specs alone can’t breach.

The ByteDance partnership is worth monitoring closely. The partnerships with Humain and the shipment of initial hyperscaler designs suggest momentum, but the gap between early traction and $15 billion in annual revenue is enormous. Investors should watch quarterly earnings for data center revenue breakouts and any new customer announcements as leading indicators of whether Qualcomm’s ambitious 2029 targets are tracking or aspirational.