Mars Finance News, June 27 – According to Fortune, Qualcomm CEO Cristiano Amon is attempting to steer the company away from its heavy reliance on smartphone chips toward a diversified business including AI chips, automotive, PCs, smart homes, and wearable devices, and is setting its next focus on the data center AI chip market to challenge Nvidia's long-standing dominance. At the investor day event held in Manhattan on Wednesday, Qualcomm unveiled its latest AI accelerator and CPU product lines. Amon stated that outsiders often question whether Qualcomm is too late to enter the highly competitive AI chip market, but he said, "For Qualcomm, it's never too late." Qualcomm expects that its data center AI component sales will exceed $15 billion annually by fiscal 2029. Driven by this, Qualcomm's stock price rose as much as 15% on Wednesday, but by Friday, most of those gains had been given back due to a sell-off in Nasdaq large-cap tech stocks. Qualcomm also expects that by 2029, its non-handset business annual revenue will reach $40 billion, double the long-term forecast from two years ago, indicating that the company's efforts to reduce its dependence on mobile chips are progressing. Amon said that public concerns about the huge energy consumption of AI and data centers actually provide an opportunity for Qualcomm to differentiate itself with products like energy-efficient CPUs. Additionally, Qualcomm announced this week that it is acquiring AI software company Modular for $3.9 billion to obtain a software platform that can compete with Nvidia's CUDA. CUDA allows developers to build AI programs and fully utilize Nvidia GPUs, which is a major reason many developers stay within the Nvidia ecosystem; Modular is seen as an attempt by Qualcomm to weaken Nvidia's software advantage. Amon said that Qualcomm has a very strong engineering culture and is not afraid to take on new challenges. He stated that the company has repeatedly pushed for business restructuring since 2021, including directions such as automotive, PC chips, and industrial applications, and is now entering a similar phase.

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Qualcomm aims to challenge Nvidia's dominance in AI chips, projecting annual sales of over $15 billion in data center AI components by fiscal 2029.

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