Qualcomm will announce Q4 earnings as it enters the AI data center market with new chips. Already competing with Nvidia and AMD, Qualcomm stock rose 11% after the announcement. Expected EPS is $2.85 on revenue of $10.7 billion, up from $2.69 EPS and $10.2 billion in Q4 2024.

The move into data centers diversifies Qualcomm’s revenue away from smartphones, which account for 75% of its revenues. Apple’s potential switch to custom chips poses a risk. The QCT segment, including smartphones and IoT, is expected to bring in $9.3 billion, while QTL licensing may generate $1.4 billion.

Qualcomm’s entry into the data center market, dominated by Nvidia and AMD, is seen as a needed diversification. BofA Global Research analyst Tal Liani predicts the market to grow to $114 billion by 2030. The company’s QCT segment is expected to grow by 7.6% year over year, bringing in $9.3 billion, while QTL licensing may generate $1.4 billion.

Read more at Yahoo Finance: Qualcomm set to report Q4 earnings as it enters AI data center market