Qualcomm Stocks Soar on Amazon Deal as CFO Eyes $5B Data Center Target
Qualcomm's stock rose by about 3% on Tuesday after the company announced a multi-generational collaboration with Amazon. The agreement includes a warrant for Amazon to purchase up to 25 million shares of Qualcomm common stock.
Qualcomm's Chief Financial Officer, Akash Palkhiwala, emphasized that the company is rapidly expanding beyond its smartphone roots and has 'very high confidence' in hitting its $5 billion data center revenue target for fiscal 2027. The financial impact of the Amazon deal will be immediate, with revenue starting in the December quarter.
Palkhiwa noted that Qualcomm already has a strong engagement with another hyperscaler similar to Amazon, and is targeting the broader CPU market, which he believes will have 'performance leadership.'