Qualcomm Stock Surges on Amazon AI Deal Worth Up to $60 Billion

Qualcomm stock rose by 3.6% to $174.88 on Tuesday after the chip designer disclosed a multigenerational agreement with Amazon for AI data-center services.

The deal is valued at up to $60 billion, but this figure represents the maximum amount of payments tied to full vesting of a long-dated Qualcomm warrant, not a disclosed order or backlog figure.

Amazon has already earned vesting on 3.75 million of the warrant's 25 million shares, which is 15% of the maximum equity award. The remaining shares will vest in tranches tied to commercial arrangements and actual Amazon purchases of server chips, technology, systems, and manufacturing services.

The collaboration brings a hyperscale customer into Qualcomm's attempt to diversify beyond handsets. Qualcomm aims to reach $15 billion in data-center revenue by 2029 and has presented a roadmap for custom silicon and AI inference accelerators.