Why Qualcomm is outperforming the rest of the market today?

Qualcomm (NASDAQ: QCOM) is one of Tuesday’s biggest movers, climbing 4% even as most of Wall Street headed lower. The jump came after the chipmaker announced a major data center partnership with Amazon (NASDAQ: AMZN) Web Services.

Qualcomm told the Securities and Exchange Commission that Amazon received warrants covering 25 million Qualcomm shares. Amazon can purchase those shares at $161.26 each, bringing the total value to about $4 billion if all of the warrants are used.

The warrants expire on September 3, 2036, and Amazon gets access to them in separate stages as certain business requirements are completed.

Qualcomm links Amazon’s warrants to as much as $60 billion in chip orders

One of those requirements could turn into a massive amount of business. Qualcomm said Amazon can receive parts of the warrants through the “execution of certain commercial arrangements” and by purchasing as much as $60 billion of Qualcomm server chips and other products. So alongside the equity piece, Qualcomm could also end up receiving tens of billions of dollars in hardware orders over the coming years.

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