Akash Palkhiwala, CFO and COO of Qualcomm (QCOM), talks about how the company&#x27;s AI data center pivot serves as a key inflection point. Qualcomm named Meta Platforms (META) and Microsoft (MSFT) as early customers in the AI infrastructure buildout. Akash believes the company is primed to take significant market share in what he calls a &quot;trillion-dollar market.&quot; He adds how Qualcomm&#x27;s deeper push into the AI buildout affects its legacy businesses like devices and automotive. ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribe Download the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185 Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7 Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watch Watch on Vizio - https://www.vizio.com/en/watchfreeplus-explore Watch on DistroTV - https://www.distro.tv/live/schwab-network/ Follow us on X – https://twitter.com/schwabnetwork Follow us on Facebook – https://www.facebook.com/schwabnetwork Follow us on LinkedIn - https://www.linkedin.com/company/schwab-network/ About Schwab Network - https://schwabnetwork.com/about

Qualcomm (QCOM) CFO & COO on AI Data Center Push, META & MSFT New Customers

Schwab Network

# Full Transcript

**Podcast:** Schwab Network

## Participants

- **Nicole** (Schwab Network)
- **Akash Palkiwala** (Qualcomm)

## Transcript

Welcome back to Opening Bell. Want to get you ready for the trading day. Big guest with us right now, very special guest and that is Akash Palkiwala. Thanks Akash Palkiwala. Thank you so much for being with us. Chief Financial Operating Officer, Chief Financial Officer at Qualcomm. So glad you're with us. So you had your investor day and people are really cheering Qualcomm, a transformation. The AI build out is real. Tell us a little bit about what's on the agenda here.

Yeah, Nicole, first of all, thanks for having me on the show. Very excited about what we announced yesterday. I think Qualcomm has been the leader on the edge devices with smartphones and cars and industrial and other areas. Now we're bringing those technologies to data center. I think as data centers evolve, what becomes very important is being able to do processing in data centers as very low power. And that's something that we've been doing for a long time.

In edge devices and we're bringing that advantage to the data center. So very positive reception from customers. I think the hyperscalers are looking for alternatives. As we move from training to inference and as the data center kind of processing changes from using GPUs for everything to disaggregated computing, there's a lot more room for the players to come in and give solutions that are very optimized for low power workloads.

And so very excited about what we announced yesterday. I think it's just the beginning for Qualcomm and data center. Yeah, you've been quietly calibrating your CPUs for this. And now with the data centers, it's sort of somewhat monumental to folks because now we're going to talk about non-handset revenue. There are some really big projections going forward, you know, on the numbers overall, the CEO also noting how confident you are in the forecast.

I mean, by 2029, we talk about $40 billion. Tell me a little bit about some of the forecasts on that and so much of it, $15 billion from the data center business alone that you're speaking of. Yeah, it's pretty incredible. I think we're going to have a target of 2029 revenue for non-handset of $22 billion.

We are revising that target from $22 billion to $40 billion. So that's all nearly a 2x increase in a revenue target two years out. And so very excited. Data center is a big part of it. We are now looking at $15 billion of revenue in 29, $5 billion of revenue next year.

And really, this is a very large market. It's a trillion-dollar market. And for Qualcomm to have a target of, say, approximately 5% share of that market is very reasonable. And so I think it's just the beginning. We start in 27 with custom chip engagements with two global hyperscalers. But that's the start. And we're going to engage with other hyperscalers and have a very broad product line. Super excited about what we're going to do with it...

Qualcomm (QCOM) CFO & COO on AI Data Center Push, META & MSFT New Customers

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Qualcomm (QCOM) CFO & COO on AI Data Center Push, META & MSFT New Customers

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.