Bring a large pot of salted water to a boil. Cook the penne pasta according to the package directions until al dente. Drain the pasta and set it aside.

Heat the olive oil in a large skillet over medium-high heat. Add the diced onion, red bell pepper, and yellow bell pepper. Sauté for 3 to 4 minutes, stirring occasionally, until the vegetables begin to soften.

Add the diced chicken to the skillet with the vegetables. Sprinkle the taco seasoning evenly over the chicken and stir well to coat. Cook for 7 to 8 minutes, stirring occasionally, until the chicken is golden and cooked through, reaching an internal temperature of 165 degrees Fahrenheit.

Reduce the heat to medium. Add the cubed Velveeta cheese, both cans of diced tomatoes with green chilies, and the heavy cream. Stir continuously until the cheese has completely melted and the sauce is smooth and creamy.

Add the cooked and drained penne pasta to the skillet. Toss everything together until the pasta is evenly coated in the queso sauce. Allow the mixture to simmer for 2 to 3 minutes so the flavors blend and the sauce thickens slightly.

Spoon the cheesy chicken pasta into bowls or onto plates. Serve hot.