Qualcomm Announces Multi-Generational Custom Chip Deal with Amazon, Sending Stock Up Over 9%
On September 8, Qualcomm (QCOM) announced a multi-generational partnership with Amazon (AMZN) to develop custom AI chips and next-generation optical networking for AWS data centers. The deal includes the production of multiple generations of AI inference-focused silicon as well as high-speed optical connectivity solutions built on technology from Alphawave Semi, which Qualcomm acquired in 2025. The agreement also features a financial component where Amazon will receive a warrant to purchase up to 25 million QCOM shares at $161.26 each, potentially worth around $4 billion. This collaboration marks a significant expansion of both companies' strategic ties and positions Qualcomm in the growing AI inference market. Qualcomm's stock surged over 9% premarket following the announcement, marking one of its strongest single-day gains this year. The deal is part of CEO Cristiano Amon’s broader strategy to shift Qualcomm into data center markets as smartphone demand wanes and Apple moves toward self-designed chips.
Topics: AI custom silicon data centers M&A semiconductors