Qualcomm (QCOM) Stock Jumps 9% as Amazon Deal Reveals Mystery Hyperscaler
TLDR
- Qualcomm and Amazon announced a multi-generational deal to build custom AI chips and optical networking for AWS data centers
- QCOM jumped more than 9% in premarket trading, climbing as high as 10% during the session
- Qualcomm will issue Amazon a warrant to buy up to 25 million QCOM shares at $161.26 each, worth roughly $4 billion
- The deal covers AI inference chips across multiple generations and optical connectivity up to 1.6 terabits per second
- Bernstein reiterated a Market Perform rating and $165 price target; Baird is more bullish with a $400 target and Outperform rating
Qualcomm CEO Cristiano Amon had been teasing a big hyperscaler deal for months. On Tuesday, Sept. 8, the mystery customer was revealed: Amazon.
Qualcomm (QCOM) and Amazon (AMZN) announced a multi-generational collaboration to build custom AI chips and next-generation optical networking for AWS data centers. QCOM jumped more than 9% in premarket trading, hitting as high as 10% during the session.
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