Qualcomm's Amazon Partnership Sparks Analyst Reactions

Qualcomm's recent announcement of a multi-generational product collaboration with Amazon has garnered attention from analysts, who are weighing in on its implications for the company's stock.

The partnership aims to build next-generation AI datacenter infrastructure, including customized silicon for inference and optical connectivity solutions. Qualcomm will also deepen its use of AWS AI infrastructure. As part of the deal, the company disclosed a 25 million warrant grant to Amazon, with an exercise price of $161.26 per share.

Bernstein SocGen Group reiterated a Market Perform rating and $165.00 price target on Qualcomm shares following the announcement. According to their analysis, the stock remains undervalued at current levels, with a Fair Value of $192.17. They noted that the deal should give Qualcomm high confidence in meeting its numbers.