Qualcomm stock pops on data center infrastructure deal with Amazon
Qualcomm shares rose following a partnership with Amazon Web Services to develop custom silicon for AI infrastructure. The deal includes a $4 billion investment through warrants for Qualcomm stock.
Why it matters
This partnership signals Qualcomm's aggressive expansion into the data center and AI chip market, challenging incumbents like Nvidia.
Qualcomm shares rose 3% on Tuesday after the company announced a data center infrastructure partnership with Amazon Web Services, a major win as the chipmaker tries to take on Nvidia in the artificial intelligence market.
As part of the agreement, Qualcomm said in a filing with the Securities and Exchange Commission that it issued warrants to Amazon to acquire 25 million shares in the company at $161.26 apiece for a total investment of $4 billion.
According to a press release about the technology pact, Qualcomm is working with Amazon "across multiple generations of customized silicon" to help build out AWS' AI infrastructure, specifically focused on inference.
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