Qualcomm shares jumped on Tuesday after the chipmaker announced a multi-generation collaboration with Amazon to build custom AI chips and high-speed networking gear for data centers. Qualcomm issued Amazon a warrant tied to up to $60 billion in potential business, and the company plans to lean on AWS infrastructure to speed up its own chip design.
Qualcomm's stock rose more than 7% in early trading, Reuters reported, after the company said it had issued a warrant to Amazon as part of a new collaboration to develop custom chips for AI data centers. The move gives Qualcomm's stock some of the good news that has largely bypassed it this year.
Warrant tied to $60 billion in business
Qualcomm issued Amazon a warrant giving it the right to buy up to 25 million shares at $161.26 each, according to the company's 8-K filing. The warrant expires in September 2036 and is linked to up to $60 billion of business under the deal. Reuters put the value of the stake Amazon can buy at about $4 billion.
Custom chips target AI inference
The companies will work together on custom AI chips focused on inference, the process by which trained AI models generate predictions. Qualcomm and Amazon are also developing optical-connectivity components, including a next-generation 1.6 terabit-per-second solution for data center networking. As part of the partnership, Qualcomm plans to expand its use of AWS AI services and infrastructure for chip design workloads, aiming to shorten development cycles.
Shares still trail the chip sector's rally
Qualcomm's stock was up 5.6% shortly after the market open on Tuesday, while Amazon's stock was down fractionally.
Shares are now positive for the year but have lagged the PHLX Semiconductor Index, which is up 68% in 2026 to date. Investing.com reported the stock had slipped about 1% this year, as an August rebound only partly recouped losses tied to weaker smartphone demand.
Sources: MarketWatch.com, Investing.com
Trading involves risk.
Risk Disclaimer
