Jeff Kagan sees AI as Qualcomm’s next growth engine

Industry analyst Jeff Kagan says Qualcomm’s push into AI data centers, autonomous driving and edge computing could mark the start of a new growth cycle. He argues the company’s next several years will show whether AI can replace smartphones as its long-term driver.

Why it matters: - Qualcomm is trying to grow beyond smartphones as the wireless market matures. - Jeff Kagan says AI could become the company’s next major revenue engine and reshape its outlook for investors, customers and employees. - The shift matters because AI is spreading across data centers, vehicles, devices and industrial systems.

What happened: - Jeff Kagan said Qualcomm’s expanding focus on artificial intelligence, AI data centers, autonomous driving and edge computing may mark the start of another major growth cycle. - Kagan said Qualcomm has repeatedly adapted as technology markets changed, first in wireless and later in smartphones and mobile computing. - Kagan said the company now appears to be positioning itself for another transformation driven by AI.

The details: - Qualcomm recently introduced its Dragonwing server platform, aimed at the AI infrastructure market. - Some industry forecasts suggest Qualcomm could generate as much as $15 billion in annual AI data center chip revenue by 2029. - Qualcomm’s automotive business could become a $10 billion annual revenue opportunity by 2029, according to industry projections. - Qualcomm is also extending its AI capabilities into robotics, industrial automation, edge devices, PCs, smartphones and other connected technologies. - Qualcomm competes with companies including Huawei, Samsung, Apple, Nvidia, Intel, AMD, Broadcom, MediaTek, NXP, Ericsson, Nokia, Cisco, Oracle, Amdocs and ZTE.

Between the lines: - Kagan’s view reflects a broader industry shift as AI creates new demand in multiple markets at once. - His comments suggest Qualcomm’s challenge is not just entering new categories, but proving those businesses can grow at scale. - Qualcomm’s long-term story may now depend on whether AI can deliver the kind of durable expansion smartphones once did.

What’s next: - Kagan said he will keep watching Qualcomm as the strategy unfolds. - The next several years will show whether AI becomes the long-term growth engine many investors and industry observers expect. - Qualcomm’s progress in servers, automotive and edge computing will be the key signals to watch.

The bottom line: - Qualcomm may be entering a new phase, but the market will decide whether AI becomes its next lasting growth era.