Qualcomm Licenses Huawei Chip Tech as Its Push Beyond Smartphones Picks Up Speed
Key takeaways
- Qualcomm is aggressively pivoting to data‑center and AI markets, securing high‑value licensing and partnership deals, but investors are unsure how much upside is already priced in.
- $6.9 billion Huawei licensing value
- $15 billion data‑center revenue target by fiscal 2029
- $40 billion total non‑handset revenue target
What happened
Qualcomm announced a multiyear patent licensing deal with Huawei Technologies that covers 5G, AI, computing and networking, including Huawei’s LogicFolding chip technology. The agreement is expected to add more than $6.9 billion in licensing value for Huawei. Qualcomm also highlighted its data‑center strategy, projecting at least $15 billion in data‑center revenue by fiscal 2029 and $40 billion in total non‑handset revenue. The company secured new partnerships with Meta Platforms and Amazon…
Why it matters
The deal signals Qualcomm’s shift from a handset‑centric business to a broader device‑and‑cloud supplier, potentially unlocking new high‑margin revenue streams. It also demonstrates the company’s ability to secure large hyperscaler customers, which could offset declining smartphone sales and high‑margin Apple…
Short-term and longer-term
Short-term. Over the next few days, watch for any earnings guidance updates that might clarify the timing of the Huawei licensing revenue and the Meta/AWS partnership milestones.
Longer-term. Over the next 12–18 months, the shift toward data‑center and AI revenue could materially alter Qualcomm’s long‑term growth trajectory.