Qualcomm shares jumped more than 12% in after-hours trading on Tuesday after the company projected US$15 billion in annual sales from its data center business by 2029.
The forecast underscores a strategic acceleration into artificial intelligence infrastructure, moving the San Diego-based firm beyond its traditional stronghold in mobile connectivity chips.
The stock’s sharp rise indicates that traders view the $15 billion target as credible and material to the company’s long-term valuation.
The market reaction reflects investor appetite for semiconductor companies successfully diversifying into high-growth AI workloads.
Qualcomm’s guidance suggests it is positioning itself to capture a significant share of the data center build-out, competing directly with established players in server processors and custom AI accelerators.
The stock’s sharp rise indicates that traders view the $15 billion target as credible and material to the company’s long-term valuation.
This development follows a broader wave of optimism in the semiconductor sector.