Qualcomm Secures Major Data Center Deal with Amazon
Qualcomm (QCOM) announced a significant multi-generation partnership with Amazon (AMZN), focusing on custom AI chips for data centers and optical connectivity technology. The deal marks Qualcomm's first major breakthrough in the fast-growing AI infrastructure market, which investors had long anticipated as part of the company’s strategy to diversify beyond smartphones. Qualcomm CFO Akash Palkhiwala described it as a “landmark” agreement that will accelerate revenue growth from data centers and help achieve its $5 billion target for fiscal 2027 with high confidence. The partnership includes customized silicon development for Amazon Web Services (AWS) across multiple product generations, along with joint work on optical connectivity solutions starting at 1.6 terabits per second. Qualcomm will also utilize AWS tools like Amazon Bedrock to enhance its chip design process. The deal involves warrants tied to up to $60 billion in purchases over the next decade. Qualcomm’s stock rose following the announcement, reflecting investor optimism about the company's expansion into data centers and AI infrastructure.
Topics: AI chips corporate partnership data centers stock movement