Semiconductor firms Qualcomm and Broadcom pivot toward AI and data centers

Major semiconductor companies are shifting their strategic focus toward artificial intelligence and data center technologies. Qualcomm Chief Financial Officer Akash Palkhiwala announced a plan to transform the company into a three-pillar business model consisting of data centers, smartphones, and automotive/IoT, aiming for each segment to be roughly equal in size within two years.

Broadcom has also reported strong growth in AI semiconductor revenue, providing an aggressive outlook for fiscal years 2027 and 2028. However, analysts note that Broadcom’s growth model is increasingly reliant on frontier AI labs such as OpenAI and Anthropic, which introduces risks due to their unproven profitability. Both companies face intensifying competition from rivals like Nvidia and Advanced Micro Devices.