Qualcomm reveals Meta as first Big Tech customer for data centre chips

Qualcomm announced Meta as its first major Big Tech customer for its new data center chips on November 1, 2023, a deal that significantly boosted the chipmaker's stock by up to 15%. This partnership marks a strategic move for Qualcomm as it aims to compete with established players like Intel and NVIDIA in the lucrative data center market. The agreement with Meta Platforms, Inc. is expected to drive substantial revenue growth for Qualcomm in the coming years, as the social media giant seeks to diversify its silicon suppliers for its vast artificial intelligence and cloud computing infrastructure. Qualcomm's new chips are designed to offer enhanced performance and power efficiency, crucial factors for large-scale data operations. The company also raised its revenue outlook for the fiscal year 2024, projecting between $38.5 billion and $40.5 billion, an increase from its previous forecast of $37 billion to $39 billion. This optimistic outlook reflects growing confidence in Qualcomm's ability to capture market share in the enterprise sector, moving beyond its traditional strength in mobile processors. The deal with Meta is seen as a significant validation of Qualcomm's strategy to expand into high-performance computing and AI workloads.