Qualcomm Announces AI Partnership with Amazon Amid Declining Apple Revenue
Qualcomm (QCOM) stock rose by 3.2% on Sept. 8 after the company announced a multi-year partnership with Amazon (AMZN) to develop customized silicon for large-scale artificial intelligence data centers, potentially generating up to $60 billion in revenue over the next decade. The deal comes as Qualcomm faces declining smartphone demand and weakening performance from its CDMA Technologies business. The third quarter of fiscal 2026 saw a 4% year-over-year drop in total revenue to $9.9 billion, with QCT revenue falling by 5%. Handset revenue dropped sharply by 20%, driven by soft consumer demand and rising component costs due to AI infrastructure trends. Despite these challenges, Qualcomm is positioning itself for long-term growth through diversification into data centers, automotive, and IoT. The company expects non-handset QCT revenue to exceed $40 billion by fiscal 2029, with the partnership with Amazon offering a significant new avenue in the AI infrastructure market.
Topics: AI infrastructure corporate partnerships revenue growth semiconductors