Qualcomm Says Data Center Chips to Produce ‘Billions’ in ’27
Bloomberg 2026-06-24 21:23:35
Context: Qualcomm is expecting its data center chips to generate billions of dollars in revenue in 2027, according to a recent statement. This projection comes as companies at the forefront of artificial intelligence (AI) forecast massive earnings, with some analysts drawing parallels between the control chip companies have over AI memory and the influence oil companies have on energy prices. The comments were made in the context of Micron's upcoming earnings report and the broader tech environment.
Key Facts
- Qualcomm expects its data center chips to produce billions of dollars in revenue in 2027.
- The projection is part of a larger trend in which companies leading the AI space, including chip companies, are forecasting significant earnings and exercising considerable control over their respective markets.
- Analyst Mandeep Singh of Bloomberg notes that there are similarities between the control chip companies have over AI memory and the influence oil companies have on energy prices, suggesting that these companies are unlikely to rapidly increase their capacity as they continue to generate substantial revenue.
- The comments were made in anticipation of Micron's earnings report, which is expected to provide further insight into the tech environment and the performance of companies at the forefront of AI.
- According to Singh, chip companies are currently bringing in significant amounts of money and are unlikely to increase their AI memory capacity, allowing them to maintain control over the market.