Qualcomm's Data Center Move Convinced Goldman Sachs

Qualcomm's ambitious steps towards the artificial intelligence-focused data center market have caused Goldman Sachs to significantly raise its expectations for the company. The investment bank revised Qualcomm's target share price with a serious increase of approximately a percentage. This situation reveals how the concrete financial targets following a corporate investor meeting created a positive impact on market experts. Evaluations clearly show that confidence in the revenues Qualcomm will generate in technology areas outside of mobile devices has increased. This revision proves the extent of the opportunity that the increasing global demand for artificial intelligence infrastructures creates for semiconductor giants.

The 12-month target price set by Goldman Sachs for Qualcomm was raised from its previous level to 180 dollars. While creating this new target, the bank also revised its normalized earnings per share expectations upward, applying a higher multiplier. According to the new data, the bank increased all company estimates for Qualcomm by an average of 10 percent following the Investor Day event. The details announced during the event ensured that analysts felt a clear confidence in the company's future revenue route. The company's updated strategy and revenue targets indicate a growth potential well above the expectations of many experts in the market.

At the event held in New York, Qualcomm announced that they will nearly double their long-term and non-smartphone revenue targets to 40 billion dollars for fiscal year 2029. The company's management stated that they expect approximately 15 billion dollars of this massive target to come directly from data center revenues. These ambitious figures set the stage for Goldman Sachs to estimate Qualcomm's data center revenue at 5 billion dollars for fiscal year 2027 and 8.2 billion dollars in 2028. Such high amounts prove how financially solid the foundation of Qualcomm's transformed versatile technology company vision is. The newly developed next-generation server processors and AI-supported chips are at the center of the company's long-term growth plans.

One of the biggest assurances behind Qualcomm's ambitious data center targets is the agreements made with industry giants. Social media and technology giant Meta has already committed to using the company's next-generation server processor to be produced in 2028. In addition to this, Microsoft's Azure unit has also signed an agreement to use a special chip produced by Qualcomm aimed at eliminating bottlenecks in artificial intelligence systems by mid-2027. The preference of these two giant technology companies for Qualcomm's hardware strengthens its competitive position in the industry. Such heavy spending by corporate customers has become one of the most important factors shaping the future route of the entire semiconductor industry.

Despite this, Qualcomm is still struggling to find a solution to the contraction problem in the smartphone market. Aligning with the guidance of the company's management, Goldman Sachs raised its automotive and Internet of Things (IoT) revenue expectations but had to lower its handset revenue forecasts. Mobile phone sales, which accounted for 72 percent of the company's chip revenues in fiscal year 2025, are expected to decline to only one-third of the total by 2029. Despite all these strategic successes and diversification moves, Qualcomm's stock performance has gone well beyond market expectations. The company's shares traded at 182.97 dollars on 8 July, even surpassing Goldman Sachs's new and high target price, revealing that the current optimism in the stock is even more aggressive than analyst estimates.