Qualcomm Technologies saw its shares surge as much as 9.5% before stabilising at roughly a 3% gain on Tuesday, following the disclosure of a new artificial‑intelligence collaboration with Amazon and its cloud unit, Amazon Web Services.
The agreement covers a multi‑generational chip programme aimed at AI inference workloads and high‑performance optical connectivity solutions rated up to 1.6 terabits per second. Under the deal, Qualcomm will issue a warrant that permits Amazon to purchase up to 25 million Qualcomm common shares. Revenue from the partnership is expected to begin in the December quarter.
Chief financial officer Akash Palkhiwala told a Goldman Sachs conference in San Francisco that the company is “very confident” of hitting a $5 billion data‑center revenue target for fiscal 2027. He noted that the total addressable market for CPUs has more than tripled to over $200 billion a year since Qualcomm’s earlier agreement with Meta, and that roughly half of that market is expected to shift to Qualcomm’s architecture.
Palkhiwala also highlighted ongoing engagements with another unnamed hyperscaler and outlined plans for a compute‑plus‑memory stack coprocessor for phones, cars, PCs and robotics. He added that the broader smartphone market remains at a cycle low, with pressure on the low‑end segment, but that the new Amazon deal marks the first of what he expects to be multiple large hyperscaler contracts.
