Qualcomm to Re-Enter the Data Center Market with Nvidia

QUALCOMM Incorporated (NASDAQ:QCOM) announced on Monday that it will make a return to the data center CPU market with NVIDIA Corporation (NASDAQ:NVDA). The company will develop custom central processing units for data centers that use NVIDIA’s technology to connect efficiently with its artificial intelligence chips.

An aerial view of a bustling semiconductor production zone showcasing the company’s integrated circuits.

This is not the first time that QUALCOMM Incorporated (NASDAQ:QCOM) will be making CPUs for data centers. Back in 2010, the company began the development and testing of Arm-based CPUs with Meta Platforms. However, these developments were scaled back due to cost constraints and legal challenges. The CEO of QUALCOMM Incorporated (NASDAQ:QCOM), Cristiano Amon, noted that they have been quietly reviving their data center CPU ambition by being in talks with Meta Platforms, and they also recently signed a letter of understanding with an AI firm in Saudi Arabia to co-develop custom data center CPUs.

Now, the company will incorporate its CPUs with NVIDIA’s GPUs to deliver high-performance, energy-efficient computing tailored for AI applications. This initiative, which was announced at COMPUTEX 2025, aligns with QUALCOMM Incorporated’s (NASDAQ:QCOM) broader strategy to diversify its revenue streams. During the fiscal second quarter of 2025, the company highlighted that it is targeting $22 billion in non-handset revenue by 2029, with AI being a key driver of growth.

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