Qualcomm Stocks Soar as Amazon Deal Paves Way for Data Center Growth
Qualcomm's stock jumped nearly 9.5% on September 8th after announcing a long-term agreement with Amazon to design custom silicon and optical networking solutions for Amazon Web Services.
The deal, which grants Amazon warrants to acquire up to 25 million shares of Qualcomm common stock at $161.26 per share, ties ownership directly to performance.
Amazon will vest initial blocks of shares as it purchases hardware and services from Qualcomm worth up to $60 billion over a decade, with the remaining shares vesting progressively across tiers linked to Amazon Web Services' purchases.
Qualcomm's new partnership with Amazon extends beyond processing units into data center networking, providing high-speed SerDes and optical digital signal processing technologies acquired through its $2.4 billion acquisition of Alphawave Semi.