Qualcomm Secures Major AI Data Center Deal with Amazon
Qualcomm has secured a significant multi-generational partnership with Amazon to supply customized silicon and related technology for large-scale AI data centers, focusing on inference. The deal could involve up to $60 billion in purchases of Qualcomm's chips and products over time, marking the company’s entry into an increasingly competitive segment dominated by established players like NVIDIA and AMD. This collaboration is seen as a strategic foothold for Qualcomm in the growing AI infrastructure market, where hyperscalers are seeking more compute power, faster connectivity, and better energy efficiency. RBC Capital Markets has raised its price target on QCOM stock to $180 from $160 due to this development. Qualcomm's recent performance has been volatile, with a 30% drop from its 52-week high earlier in the year before showing signs of recovery.
Topics: AI Amazon chip supply agreements data centers Qualcomm