Qualcomm Surges on $60B Amazon Deal
Qualcomm's stock surged around 4% on Tuesday after announcing a significant deal with Amazon Web Services. The chipmaker will supply customized silicon for large-scale AI data centers, marking its third hyperscaler partnership.
The collaboration will span multiple generations of custom chips focused on AI inference and optical connectivity solutions extending up to 1.6T, built on Qualcomm's SerDes and optical DSP technologies. This partnership puts Qualcomm in a unique position relative to Amazon's own chip ambitions.
As part of the agreement, Qualcomm issued Amazon a warrant to purchase up to 25 million QCOM shares at $161.26 each. The initial tranche of 3.75 million shares will be issued immediately, with the remainder tied to commercial milestones that could total up to $60 billion in business under the deal.