Qualcomm Shares Jump 4% on Major Data Center Partnership with AWS

Qualcomm (NASDAQ: QCOM) shares surged 4% on Tuesday, making it one of the biggest movers in the market. The company's stock price jumped after announcing a major data center partnership with Amazon Web Services (AWS).

The partnership involves Amazon receiving warrants covering 25 million Qualcomm shares at $161.26 each, bringing the total value to approximately $4 billion if all the warrants are used. The warrants expire on September 3, 2036.

Qualcomm believes that this partnership could lead to tens of billions of dollars in hardware orders over the coming years. Amazon can receive parts of the warrants by executing certain commercial arrangements and purchasing up to $60 billion of Qualcomm's server chips and other products.