Qualcomm's Secret Partnership with Amazon Could Boost Its AI Prospects
Qualcomm is an underrated artificial intelligence (AI) stock that may be worth considering. The company recently partnered with Amazon, which could unlock growth opportunities for the business. In fact, Qualcomm announced a deal with Amazon earlier this month, where it could sell up to $60 billion in AI chips. Additionally, Amazon has been granted warrants to acquire $4 billion of Qualcomm's stock at a price of $161.26.
The partnership between Qualcomm and Amazon is significant because more companies are diversifying outside of chip giant Nvidia to custom chipmakers. This can lead to greater efficiency and reduced costs in the process. As a result, Qualcomm may benefit from this trend and see its stock rise as a result.
Qualcomm's stock has been underwhelming this year, with only a 6% increase. However, its valuation is relatively low, trading at 21 times its trailing earnings. This could make it an attractive option for investors who are looking to get into the AI space without breaking the bank.