Qualcomm Stock Jumps on Amazon Web Services Deal
Climbed after the company said it is working with Amazon Web Services on customized silicon for AI infrastructure. The deal includes warrants for Amazon to buy…
Qualcomm stock rose 3% on Tuesday after the chipmaker announced a data center infrastructure partnership with Amazon Web Services, a move that adds fresh momentum to its push into artificial intelligence infrastructure.
The agreement matters because Qualcomm is trying to move beyond its long-standing smartphone business and win a bigger role in the data center market, where Nvidia has dominated the AI boom.
Qualcomm stock gets a lift from Amazon deal
In a filing with the Securities and Exchange Commission, Qualcomm said it issued warrants to Amazon to acquire 25 million shares at $161.26 apiece, for a total investment of $4 billion. CNBC reported the company is working with Amazon across “multiple generations of customized silicon” to help build AWS’ AI infrastructure, with a focus on inference.
That combination gave investors a clear signal. Qualcomm stock closed at $181.97 in the latest trading session tracked by Yahoo Finance, up 2.88% from the previous day. The move outpaced the S&P 500’s daily gain of 0.86%, while the Dow gained 0.98% and the tech-heavy Nasdaq added 0.96%.
Qualcomm’s shares have also risen 7.34% in the past month, according to Yahoo Finance. The stock has held up better than the Computer and Technology sector, which lost 0.56%, and the S&P 500, which lost 1.96% over the same period.
Why the deal matters now
Qualcomm has spent years building its reputation around processors for smartphones and mobile devices. This year, it has moved more visibly into data centers. In June, the company unveiled a central processing unit for data centers called Dragonfly C1000 and said Meta would use it when production starts in 2028.
Qualcomm said at the time that it is targeting $15 billion in data center sales in fiscal 2029. The company also pointed to a road map with several products aimed at the market, signaling that its interest in AI infrastructure is not a one-off experiment.
For investors, the Amazon partnership gives Qualcomm something the market has been waiting for: a stronger proof point that its custom silicon ambitions can land real customers. The data center business carries much higher stakes than Qualcomm’s traditional handset market, and it puts the company in direct competition for AI workloads, compute, networking and power efficiency.
That shift could matter far beyond Wall Street. If Qualcomm can win more business in AI infrastructure, it may reduce reliance on the mobile cycle and build a steadier second engine of growth. If it cannot, the company will still have to justify the large bets it is making on data center chips, especially as competition remains intense.
Yahoo Finance said analysts are watching Qualcomm’s upcoming earnings release closely. The latest consensus estimate projects earnings per share of $2.18, down 27.33% from the same quarter last year, while revenue is expected at $10.16 billion, down 9.83% year over year.
For the full year, Zacks Consensus Estimates point to earnings of $10.54 per share and revenue of $42.89 billion. Those figures would mark changes of -12.39% and -2.82% from last year. Qualcomm currently carries a Zacks Rank of #3, or Hold, after the Zacks Consensus EPS estimate moved 0.34% lower over the last 30 days.
