Qualcomm (QCOM) Stock Pops 9% After Landing a $60B Amazon AI Chip Deal
TLDR
- Qualcomm and Amazon announced a collaboration to build custom AI chips for large-scale data centers, focused on inference workloads.
- Qualcomm issued Amazon a stock warrant to buy up to 25 million QCOM shares at $161.26 each.
- The warrant is tied to potential revenue of up to $60 billion and expires in September 2036.
- The two companies are also co-developing optical connectivity components, including a next-gen 1.6T solution.
- QCOM stock jumped as much as 9.5% on the news, putting it back in positive territory for 2026.
Qualcomm stock shot up as much as 9.5% on Tuesday after the company announced a multi-generational chip collaboration with Amazon, giving investors a piece of good news the stock sorely needed.
QCOM opened up around 5.6% shortly after the market open before extending gains. The stock had been lagging the broader chip sector heading into the announcement.
The deal centers on building custom AI silicon for Amazonโs large-scale data centers. The chips will focus on inference, the process by which AI models generate outputs based on training data.
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