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 in the firm's push beyond its traditional mobile stronghold into the high-growth server market.
The market reaction was immediate and sharp, with investors rewarding the clarity of the long-term revenue target.
The move highlights a broader shift in sentiment toward semiconductor firms that can demonstrate tangible exposure to artificial intelligence infrastructure build-outs.
Qualcomm's guidance suggests it is positioning itself as a serious contender in the data center space, competing directly with established players in the server chip market.
This development comes amid a wider rally in the semiconductor sector.