Qualcomm stock jumps on AI data center push, Meta and Microsoft deals

Qualcomm shares rose after investor day updates highlighted a major expansion beyond handsets into AI data centers. The company raised its fiscal 2029 non-handset revenue target to $40 billion and said it now expects $15 billion in data-center revenue by that year, implying a much smaller reliance on smartphones. Strategic validation came from Meta Platforms, which plans to use Qualcomm’s Dragonfly C1000 CPUs in 2028, and Microsoft’s Azure, which will adopt Qualcomm’s HBC architecture in mid-2027. Qualcomm also agreed to buy Modular for $3.9 billion in stock to strengthen its AI software stack and compete more directly with Nvidia’s CUDA ecosystem. The market reaction was positive, with the stock up as much as 8% intraday and still higher by 4.34% at $205.88. Analysts were divided: some see the data-center opportunity as promising, while others warn execution and AI spending durability remain key risks.