Qualcomm expects revenue to begin appearing near the end of fiscal 2027, with the opportunity developing more fully in fiscal 2028.
- Qualcomm CEO Cristiano Amon called the SpaceX agreement the beginning of a relationship with “tremendous potential.”
- Starlink Mobile’s nationwide terrestrial 5G deployment begins in 2027, with tens of thousands of sites planned.
- Qualcomm will supply Dragonwing chips and foundational software to support network coverage, capacity and power efficiency.
Qualcomm (QCOM) CEO Cristiano Amon said its Starlink Mobile deal with Elon Musk’s SpaceX has “tremendous potential,” with deployment beginning in 2027 and the revenue opportunity expected to take shape more fully in fiscal 2028.
SPCX stock fell nearly 4% on Wednesday, while QCOM jumped over 5% to its best day in over a month.
Qualcomm Maps Out Starlink Revenue Timeline
This is a significant win for our infrastructure business and the beginning of a strategic relationship with tremendous potential,” Amon said on Qualcomm’s fourth-quarter earnings call on Wednesday.
The partnership gives Qualcomm a role in powering Starlink Mobile’s upcoming nationwide terrestrial 5G network as the chipmaker expands beyond smartphones. As part of the deal, announced earlier Wednesday, SpaceX plans to deploy tens of thousands of sites. “Under a multi-year agreement, deployment begins in 2027, and it is expected to be one of the largest 5G deployments in the United States,” Amon said.
While the rollout starts in 2027, Qualcomm expects revenue to begin appearing toward the end of its fiscal 2027, with the opportunity taking shape more fully the following fiscal year. “You should think about from a financial standpoint, it will start to appear as we exit fiscal 2027. It is more of a fiscal 2028 from a revenue standpoint,” Amon told on the call.
Qualcomm will supply chips and foundational software through its Dragonwing infrastructure platforms, supporting the radios and processing equipment behind Starlink’s ground network. “We provide silicon content for radio, including massive MIMO, as well as the accelerator for the digital unit, and we provide software on the Layer 1,” Amon said.
Starlink’s radios will use 64 transmit and 64 receive paths. Qualcomm said the tech can improve coverage and help the network carry more traffic over its available airwaves, while its platforms are designed to improve power efficiency.
Amon also pointed to opportunities beyond the initial deployment, saying the partnership includes planning for the next generation of wireless. “I think we have seen a lot of trends of technology ranging from Open RAN to AI native as an opportunity to innovate in this space,” he said.
Starlink’s Mobile Push Gives QCOM Another Growth Route
The partnership supports SpaceX’s plans to combine ground-based cellular coverage with its satellite network. “Starlink is building the first fully-integrated nationwide satellite and terrestrial network that will keep people connected no matter where they are,” said Michael Nicolls, senior vice president of Starlink.
SpaceX also agreed last month to acquire Grain Management’s nationwide 800 MHz spectrum portfolio, covering up to 14 megahertz of paired airwaves.
For Qualcomm, the agreement opens another growth opportunity beyond smartphones. Quarterly handset revenue fell 26% to $5.14 billion, while automotive revenue climbed 89% to $2 billion. The company also reaffirmed its $5 billion data-center revenue target for fiscal 2027.
How Do Retail Traders Feel About SPCX And QCOM?
On Stocktwits, QCOM saw ‘bullish’ sentiment while SPCX held at ‘neutral,’ with both stocks seeing ‘high’ message volume.
One user said, “$QCOM Buyimg QCOM dip here. Good stock to own in the environment in semi. Nice dividend, stock buyback , starlink deal, hyper scale customers, low P/E”
View this Stocktwits post
Another user said, “$QCOM any other chip company with any other telecom satelite company would be UP 20% on this news. not sure which they hate more elon or qcom”
View this Stocktwits post
So far this year, Qualcomm shares are up 3%, while SpaceX shares are down 16%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<