Qualcomm rolls out AI data center CPU, signs Meta as major customer

Qualcomm on Wednesday revealed a central processing unit for data centers called Dragonfly C1000 and said that Meta would use it when it starts production in 2028. The chipmaker said the new chip was built for agentic AI and focuses on offering computing performance without using too much power. The announcement was made at a Qualcomm presentation to investors, according to CNBC. Shares jumped 15 percent in extended trading on Wednesday after the company said non-handset revenue in fiscal 2029 will be 40 billion dollars, up from a prior forecast of 22 billion dollars. The company also said it is targeting 15 billion dollars in data center sales for that year and total adjusted earnings of over 18 dollars a share. Analysts polled by LSEG have an EPS target of 15.26 dollars for fiscal 2029. Qualcomm said it has secured two deals to make custom silicon chips for hyperscalers. Chief Executive Officer Cristiano Amon said the company has just been executing, collecting assets, and when we got to this point, we feel that we have a comprehensive portfolio to enter the next phase of the data center. Chief Financial Officer Akash Palkhiwala said the company already has business with nearly every hyperscaler through its smartphone chips and other existing products. This is not a new relationship. It is the benefit of what we have delivered to them already on the edge, combined with the scale and the expertise and the confidence in Qualcomm, is what makes them engage with us on data center, Palkhiwala said.