Qualcomm Partners with Amazon on Multi-Billion Dollar AI Deal

KeyBanc has maintained its Sector Weight rating for Qualcomm Inc. (NASDAQ:QCOM) after the chipmaker announced a multi-generational partnership with Amazon.com Inc. (NASDAQ:AMZN).

The agreement, which covers AI inference and optical connectivity solutions, includes 1.6T and future-generation offerings.

As part of the deal, Qualcomm issued a warrant to Amazon for up to 25 million shares tied to up to $60 billion in Amazon revenues over 10 years.

KeyBanc views the agreement as positive for Qualcomm, improving visibility into the company's data center ramp and long-term growth.

The firm reiterates Qualcomm's target of $5 billion in data center revenues by fiscal year 2027, growing to $15 billion in fiscal year 2029.