Qualcomm (QCOM) Stock Gets Price Target Hike After Amazon AWS Deal
TLDR
- Amazon announced it could buy up to $60 billion of Qualcomm’s AI data-center chips under a long-term partnership with AWS.
- Qualcomm also granted Amazon warrants worth about $4 billion to buy QCOM stock at $161.26 per share.
- QCOM jumped as much as 6.9% on the deal announcement and is up around 9% so far this month.
- RBC Capital raised its price target to $180 and Piper Sandler upgraded the stock following the news.
- Qualcomm is targeting $15 billion in data-center chip revenue by 2029 as it pushes beyond smartphones.
Qualcomm and Amazon Web Services announced a major multi-generation chip partnership on September 8, sending QCOM stock surging. Under the deal, AWS can purchase up to $60 billion of Qualcomm’s AI data-center chips and related products over time.
Amazon also received stock warrants allowing it to buy around $4 billion worth of QCOM stock at $161.26 per share. The warrants vest as product purchases are made, tying Amazon’s financial stake to the volume of chips it buys.
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