- Qualcomm builds Server Racks and CPUs looking at AI -Inferencing -Cluster in Hyperscale Data Center
- Qualcomms promised CPU possibly arrived in 2028, well after rivals have scaled infrastructure
- But investors were not enthusiastic about Qualcomm’s data center plans as stock prices dipped on the revenue release
Qualcomm may be finally ready to move beyond its mobile fortress and take a real step into the data center market.
During the recent Q3 earnings call, the company confirmed that it is in “advanced discussions” with a hyperscale customer of new silicon targeted at server infrastructure.
This can mark a significant shift for the company, which has long teased ambitions to bring arm-compatible processors into the cloud computing room, but never fully followed through the scale.
Ambitions are growing but execution will be critical
Qualcomm CEO Cristiano Amon framed the moment as an opportunity created by the evolving nature of AI workloads, arguing the providers of cloud service is increasingly focused on efficiency measurements such as tokens per day. Watts and tokens per Dollar, not just performance.
This combined with a wider industry moves away from X86 CPUs against custom arm -based alternatives, can finally give Qualcomm the entrance point it has been looking for.
However, the market is already crowded with established players who have built up dedicated AI infrastructure for years, and Qualcomm needs more than ambitions to earn meaningful traction.
Amon explained that the company is developing “a general CPU” aimed at hyperscalers.
“While we are in the early stages of this expansion, we deal with more potential customers and are currently in advanced discussions with a leading hyperscaler,” he said, “if successful, we expect revenue to begin in fiscal policy 2028 -time frame.”
Amon also mentioned other projects, including accelerator cards and even full server racks, additions intended to support AI -Inferencing clusters, signaling Qualcomm aims to become more than just a CPU supplier.
Still, there are still questions about the timeline and competitiveness of such efforts.
While Qualcomm expects revenue from this step to begin around the financial year 2028, this delay may leave the following behind more anchored rivals such as Broadcom, whose own custom accelerator business appears to scale aggressively.
Despite the optimistic tone in the message, the investor reaction was muted.
Qualcomm’s stock dipped shortly after the revenue release, suggesting that the market remains cautious with the viability of its expansion plans.
The company’s PC business, while showing modest winnings, remains small -its share of Premium Windows -Arable computers has reached only nine percent, and there is no little indication that it has the fastest CPU in any major computer category.
Competition is also clinging back in Qualcomm’s core segment, and its rival, Samsung, has indicated that it is preparing to bring its own advanced SOCs into the flagship mobile units by 2026.
This rivalry suggests that Qualcomm may try to diversify by necessity rather than from a position of strength.
Currently, Qualcomm’s jumping is into the workstation and the data center area is still theoretical.
Whether it can deliver a credible, high-performance CPU and become a serious player in the AI infrastructure to see.
Via the register
