Qualcomm Partners with Amazon for AI Data Center Chips
Qualcomm (NASDAQ: QCOM) has entered into a significant agreement with Amazon (NASDAQ: AMZN) to supply up to $60 billion worth of AI data center chips. This partnership, announced recently, includes Amazon receiving warrants valued at approximately $4 billion, allowing it to purchase Qualcomm shares at $161.26 each.
The collaboration aims to enhance optical connectivity for AI infrastructure and will see Qualcomm increasingly utilize Amazon Web Services to expedite chip design cycles. Qualcomm estimates a $1 trillion market opportunity in its data center segment and projects its non-handset business, including automotive and IoT technology, to grow to $40 billion by fiscal year 2029, representing two-thirds of its semiconductor revenue.
In June, Qualcomm had already secured a data center customer in Meta Platforms, marking its first foray into this sector. Qualcomm’s CEO, Cristiano Amon, emphasized the increasing demand for advanced computing and connectivity solutions to meet growing AI workloads.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
