Amazon Deal Lifts Qualcomm Stock by Nearly 9%
Qualcomm's stock has surged nearly 9% after Amazon announced a $60 billion deal to purchase up to $60 billion of Qualcomm's AI data-center chips and related products. The partnership will also include $4 billion in stock warrants that let Amazon buy QCOM shares at $161.26.
The news sent Qualcomm's stock price jumping as much as 6.9% on September 8, reaching $180.41. Since then, the stock has held its gains despite some profit-taking due to dilution concerns.
Qualcomm's AI strategy is also benefiting from a broader trend of increased investment in AI infrastructure, which is driving growth in the company's data-center revenue. The firm aims to reach $15 billion in data-center revenue by 2029 and has developed 1.6-terabit optical connectivity as part of its buildout.
Meanwhile, Amazon Web Services (AWS) will benefit from access to Qualcomm's custom-silicon chips, which are designed for high-performance computing applications.