Qualcomm Inc Goldman Sachs Communacopia + Technology Conference 2026

Ready to go? Ready to go.

Welcome, Akash. Thank you. Thank you for having me here.

Sure. First of all, thank you for having me here. A very exciting deal for us. I think as you rightly noted, the company is transforming. We used to be a smartphone, primarily a smartphone company. As we look forward, we are very much a highly diversified company with, I'd say, three legs of the stool. We have smartphones. We have auto IoT and data center. We set pretty compelling targets for our data center business a couple months ago at our Investor Day. Very pleased to announce this strategic transaction with Amazon. It's a first of many as we make progress towards what we laid out. You should think of this as really a landmark deal for us in the data center business. This kicks us off there. It includes two components on the product side.

First is customized silicon business with them, multiple generations of that. We are also going to be working with them on optical connectivity solutions, starting with 1.6T and follow-on generations. The transaction includes a warrant agreement that we've outlined in our 8-K that we filed today. But the way it's structured is we issue warrants against purchases of up to $60 billion from Amazon for data center products over the next 10 years. There is an upfront vesting of about 15% of those warrants that's associated with the $60 billion, and that is tied to upfront commitments that are being made by Amazon. The 15% really ties to what they're committing upfront. If you kind of wind back and look at what we had committed at Investor Day, we said approximately $5 billion in revenue in fiscal 2027.

Fiscal 2027 starts shortly for us, and this makes our number a very high confidence. It also positions us for fiscal 2028 to deliver strong year-over-year growth from 2027 to 2028. We are also similarly proceeding with the other data center customer that we talked about at Investor Day. A lot of strong progress. We'll start having revenue with Amazon starting the December quarter, and so we're already in production with them. Very excited about how this deal positions us to execute on our targets going forward. We also did set a target of $15 billion in fiscal 2029, and you should think of this agreement as one of the core components that allows us to execute on that.

From a data center perspective?

Yeah. Yeah. Yeah. Let me maybe step back, as you said, and outline the different components of our data center strategy.

There are four parts to what we're trying to do. First is custom silicon engagement. Obviously, in addition to Amazon, we've talked about one other global hyperscaler that we're engaged with. I think it's very simple. We have a very strong portfolio of technologies, both from a compute and a connectivity perspective. We also do a lot of chips, especially in advanced nodes. Tremendous expertise of high performance, low power, tremendous expertise of high yield manufacturing. We're bringing all of those things together for our custom silicon engagement. So that's the first part of the business is custom silicon. There's a lot of opportunity in the market.

We are obviously a new player, but we have all the technology scale to deliver on what's required there. The second part of the business is AI accelerator. This is an area where the market is going through a transition. We used to have one uniform solution for all kinds of AI accelerator needs. What we're seeing in the market is a disaggregation of compute, where there is certain kind of solutions. GPUs would be very good for certain things. XPUs would be very good for other things. As you break the workloads down into training and inference, as you break inference down into prefill and decode, there's a clear desire from hyperscalers to have customized solutions for various components. One of the challenges in the current set of solutions that are available is memory bandwidth-constrained solutions.