Qualcomm Teams with Amazon on Next-Generation AI Datacenter Infrastructure

Qualcomm announced a significant partnership with Amazon to develop next-generation AI datacenter infrastructure. The collaboration includes customized silicon for inference and optical connectivity solutions, as well as deepened use of AWS AI infrastructure.

The deal grants Amazon a 25 million warrant grant to Qualcomm, which has an exercise price of $161.26 per share and will vest in tranches tied to meeting conditions including product and services purchases by Amazon up to a maximum of $60 billion over the next 10 years.

Bernstein SocGen Group reiterated its Market Perform rating and $165.00 price target on Qualcomm shares, citing that the deal gives the company high confidence to meet its numbers.