Qualcomm shares soar after hint of new data centre partnership
Updated
Updated · The San Diego Union-Tribune · May 3
Qualcomm shares soar after hint of new data centre partnership
9 articles · Updated · The San Diego Union-Tribune · May 3
The stock jumped 15% after executives flagged a possible cloud-computing tie-up on Wednesday, with details deferred to the company’s 24 June investor day.
The rally came despite Qualcomm forecasting a 7% revenue drop next quarter after a 3% second-quarter decline, as Apple phases out its chips within 12 months.
Automotive revenue rose 38% and IoT 9%, but analysts say only data-centre wins can offset smartphone weakness as Qualcomm tries again to challenge Nvidia and AMD in AI infrastructure.
Can Qualcomm's hardware break NVIDIA's iron grip on the AI software ecosystem?
With memory costs tripling, is Qualcomm's low-cost AI chip strategy already obsolete?
Will a rumored OpenAI partnership be the key to finally escaping Apple's shadow?
Qualcomm’s Strategic $2B Partnership with Humain Powers Vision 2030 and AI Inference Chip Launch
Overview
In late 2025, Qualcomm secured a $2 billion deal with Saudi-backed AI firm Humain to deploy its advanced AI200 and AI250 chips in data centers totaling 200 MW, supporting Saudi Arabia's Vision 2030 goals for digital sovereignty and AI leadership. These chips, designed for efficient, large-scale AI inference with features like massive memory, near-memory computing, and confidential computing, are backed by a robust software ecosystem compatible with major AI frameworks. Qualcomm's strategy leverages its mobile expertise to offer lower total cost of ownership, targeting the growing demand for AI inference amid the generative AI boom. This partnership provides Qualcomm a strategic foothold in the Middle East and positions it to capture significant AI infrastructure market share by 2029, with plans to expand into automotive and edge AI sectors.