Qualcomm Incorporated is a global semiconductor and wireless technology leader, dominating mobile baseband and application processors (Snapdragon). The company is executing a major strategic diversification out of handsets into automotive, IoT, edge AI, and custom data center compute (Dragonfly C1000 CPU & AI platforms), targeting over $40B in non-handset revenue by FY29.

• Patented Wireless & Connectivity IP (QTL): Dominant 3G/4G/5G/6G cellular patent portfolio providing high-margin, recurring licensing revenue.
• Snapdragon Platform & Custom Oryon CPU: Industry-leading power efficiency and NPU performance (up to 85 TOPS) powering mobile, PC (Snapdragon X), automotive, and now custom hyperscaler data center silicon.
• Automotive & IoT Momentum: Automotive design-win pipeline expanded to $65B with 23 consecutive quarters of double-digit Y/Y growth; 5th Gen Snapdragon Digital Chassis ramp in September 2026.
• Hyperscaler Data Center Validation: Multi-generation custom AI silicon engagements with Meta and Microsoft as anchor customers for the Dragonfly platform.

• Analyst Day Data Center & Non-Handset Targets (09/01/2026): Qualcomm unveiled a target of >$15B in data center revenue by FY29 (Sep.), raising its total non-handset revenue target to $40B (double the prior target) and projecting FY29 EPS >$18.00. Meta and Microsoft were disclosed as anchor customers for Dragonfly custom silicon.
• Automotive Exit Run-Rate Acceleration (09/01/2026): Jun-Q automotive revenue rose 61% Y/Y, raising annualized exit run-rate to ~$7B for FY26 (up from $6B target). Expanded landmark ADAS/cockpit partnership with BMW across next-decade model programs.
• Accelerated Apple Modem Exit & Non-Handset Offset (09/01/2026): Supply constraints reduced Qualcomm's share of the upcoming iPhone launch below the expected 20%, driving an ~50% sequential decline in Apple product revenue in Dec-Q and total FY27 Apple revenue below $2B. However, >60% Y/Y non-handset growth in FY27 is projected to fully replace the lost Apple product revenue.
• Agentic AI Smartphone Cycle & On-Device NPU (09/01/2026): Early agentic AI smartphone upgrade momentum in China and partnerships with Samsung (foldables/wearables) and Microsoft (Project Solara) position Snapdragon NPUs as key enablers for on-device AI workloads.
• Modular Acquisition: Completed acquisition of Modular to deliver an end-to-end, hardware-agnostic AI software stack spanning data center and edge deployments.

• ⚠️ Memory Price Contagion & Handset Headwinds: Severe industry-wide memory shortages (DRAM reallocation to HBM) constrain smartphone supply chains, driving Jun-Q handset revenues down 20% Y/Y to $5.1B and compressing gross margins to ~53%.
• ⚠️ China & Geopolitical Exposure: International sales represent ~75% of total revenue, with China comprising >45%. Rising domestic competition from Huawei and potential tariff escalation pose ongoing risks.
• ⚠️ Near-Term Customer Transition Friction: Rapid decline in Apple modem share accelerates top-line headwinds during FY27 before non-handset mix fully takes over.