Qualcomm Seals $60 Billion Deal With Amazon on Customized AI Silicon

Qualcomm Inc., a leading chipmaker, has partnered with Amazon.com Inc. to develop customized silicon for artificial intelligence data centers.

The multi-generational agreement covers AI inference and optical connectivity solutions, including 1.6T and future-generation offerings.

In exchange for the deal, Qualcomm issued a warrant to Amazon for up to 25 million shares with vesting tied to up to $60 billion in Amazon revenues over 10 years.

KeyBanc reiterated its Sector Weight rating on Qualcomm Inc. with a price target of $160.00 following the announcement, citing the partnership's positive impact on visibility into the company's data center ramp and long-term growth.