Qualcomm stock pops on data center infrastructure deal with Amazon

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.