Qualcomm's Amazon Deal Gives Stock 'Something Special' to Point At

Qualcomm's partnership with Amazon to build next-generation AI data center infrastructure has been hailed as 'something special' by Jim Cramer, who sees it as a game-changer for the stock. The deal involves Qualcomm designing custom silicon for Amazon Web Services (AWS) to run inside its AI data centers. This multi-generational collaboration is seen as validation of Qualcomm's pivot into the data center market.

Qualcomm's core problem has been its reliance on handsets, but this deal with AWS reframes the equity and gives the stock a credible path from zero data center revenue to $15 billion by fiscal 2029. The company's guidance puts data center revenue at $5 billion in fiscal 2027.

The setup is attractive, as Qualcomm now has what its story has been missing: a named hyperscaler with skin in the game through a $4 billion warrant and a multi-generation commitment. This deal is meant to start closing the gap with Marvell Technology, which has seen its shares surge 242.26% over the past year.

However, there are execution checkpoints that need to be met for this deal to show up in results. The first checkpoint is the December quarter, when Qualcomm's custom silicon revenue begins. If Amazon's warrant vests slowly or if handset weakness deepens beyond the current run rate, the thesis fails.