Qualcomm Jumps on $15 Billion Data Center Sales Projection

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**Cristiano Amon** (0:32)
This is a different conversation. It's a different data center right now. This is about AI. But it's a valid question.
I will give you the same answer that I gave when we entered the automotive business, when we entered the industrial business, and everything that we have been doing to diversify the company. Those are fast moving markets now, changing with technology. Where we really focus is not what the data center is doing today, but what the data center is going to be doing tomorrow. The data center is now moving to agentic. That's why you see CPU companies on the rise. You see demand on the rise.

**Carrol Massar** (1:07)
Good stuff there. Cristiano Amman, Qualcomm CEO there with Romain Bostic and of course, the host of Bloomberg Tech, Ed Ludlow, who kindly is joining us right now from our Bureau in San Francisco. Do you want to point out Qualcomm shares are up about 7 percent. They're off their highs of the session.
Micron, we're going to get to that too. It's up about 17.5 percent. I think it's at an all-time high as we speak.
Wow, Ed Ludlow, where do we begin?

**Mark Pincus** (1:30)
Talk to us about it.

**Ed Ludlow** (1:31)
Yeah, it's quite a lot.

**Carrol Massar** (1:32)
What do you think? Let's talk about Qualcomm. We just heard a snippet of the CEO.

**Mark Pincus** (1:37)
Let's do that for you.

**Ed Ludlow** (1:38)
Yeah, credit where credit is due. Qualcomm is the world's biggest provider of smartphone processors, a market that is not doing great right now.
They have made this entry into data centers. What you heard from Cristiano, I'm on there, was the answer to the question, didn't you already give up on data centers and secondly, if you look at what they announced, Wall Street's clearly cheering what they've said about the future financial opportunity, but they're a little bit late to the game because these CPUs come online in 2028 They're accelerators, they're custom AI chips for running inference workloads aren't here yet. And the problem is they're in this environment where Nvidia absolutely dominates the market and whatever's left, AMD comes up and gets the rest. But both of those companies have a new chip every single year, Qualcomm's chips are two or three years away.
But he was honest about that. The market opportunity is absolutely ginormous and they are very confident they're going after a very specific bit of it because their chips are nothing to be sniffed at. They're highly performing, very efficient chips on a dollar per token basis or a dollar per kilowatt basis.

**Tim Stenovec** (2:48)
Ed, you mentioned AMD, you mentioned Nvidia. What about Intel, Broadcom, Google, Amazon? Can we throw Cerebris in there?

**Ed Ludlow** (2:58)
Yeah, you absolutely can. I mean, the field is becoming more crowded in terms of the number of players. But based on current data, which you can say is just simply sales or its deployments, Nvidia has a technical monopoly, which at Bloomberg, we believe a technical monopoly is more than 70% of the market. So, the opportunities there and clearly based on the share performance, and also like what they said, right? They're going to do $5 billion of data center sales next year, fiscal or calendar 27, and that will go up to 15 by 2029
That shows progress for a company that has historically not been in that market. All right.

**Carrol Massar** (3:39)
So Micron? Yeah. Let's talk Micron.
It was the thing that leading up to yesterday's results after the closing bell, every market guess that we had on said this is going to be really important. So what was so important about the results that has this stock, I think at an all-time high as we speak?

**Ed Ludlow** (3:58)
Yeah. It's not about beating the expectations of the street. Micron reset the expectations of the entire industry. By the way, guys, I felt you both did a really excellent job to try and get a story from the earning statement because that's all you had to go on at the time. It was that supply was tight and it's going to be tight for a long time. Clearly, higher prices is what moved the needle for Micron, not necessarily selling more units. That's exactly how the call played out. So the big wow number was that in the fiscal fourth quarter of the current period, Micron saw $51 billion of sales.