Qualcomm will be delivering meaningful revenue for custom silicon at the end calendar year starting Q1 2027 - data center chief
Qualcomm is preparing to deliver meaningful revenue from custom silicon in its data center segment, with initial shipments expected by the end of calendar year 2026 and into Q1 2027, according to the company’s data center leadership. During the Q2 2026 earnings call on April 29, CEO Cristiano Amon confirmed that the company is engaged in a “multi-generation” custom silicon partnership with a leading hyperscaler, though the customer remains unnamed. The collaboration is part of Qualcomm’s broader strategy to expand into the data center market, which it views as a significant growth opportunity.
Qualcomm’s data center ambitions have been bolstered by recent strategic moves, including the $2.4 billion acquisition of Alphawave Semi in June 2025, which added high-speed connectivity and custom silicon capabilities. The company has also been developing its own AI inference platforms, such as the AI200 and AI250, and has engaged with partners like Humain, the Saudi Arabian AI company, to build AI data centers.
In May 2026, Qualcomm reaffirmed its guidance for data center revenue to become “material” in fiscal 2027, with Amon stating that the segment could generate multiple billions of dollars in revenue. The company’s CFO, Akash Palkhiwala, reiterated that initial shipments later in 2026 for the custom silicon engagement are expected.
Qualcomm’s entry into the custom ASIC market comes amid growing demand from hyperscalers for optimized, workload-specific silicon. While the company faces strong competition from firms like Broadcom, Arm, and in-house efforts from cloud providers, Qualcomm’s expertise in power-efficient computing and its recent strategic investments position it as a credible player in the space.
The June 24 investor day will be a key moment for Qualcomm to outline its data center roadmap and provide further clarity on its custom silicon strategy. Investors will be closely watching for concrete revenue targets and timelines to assess the potential impact on the company’s long-term growth.
