Qualcomm Stock Jumps 9.5% After $60B AWS Chip Deal

Qualcomm2 min read6 sources

Why is Qualcomm stock up today?

Qualcomm (QCOM) stock jumped as much as 9.5% intraday Tuesday, closing near $175, after striking a multi-generation AWS chip deal backed by warrants worth up to $60 billion.

Key numbers

QCOM intraday move	+9.5%vs prior close $168.74
QCOM session close	+3.9%pared from intraday peak
Amazon warrant	25M shares @ $161.26worth up to $60B fully vested
Deal purchase ceiling	$60Bthrough 2036
Data-center revenue target FY2027	$5Bvs FY2029 target $15B
Qualcomm market cap	~$187.4Bpost-announcement

What happened

Qualcomm (QCOM) stock jumped as much as 9.5% intraday Tuesday, closing near $175, after striking a multi-generation AWS chip deal backed by warrants worth up to $60 billion. Qualcomm and Amazon Web Services agreed to co-develop several generations of custom AI inference chips and ultra-fast 1.6-terabit optical networking gear for AWS data centers. As part of the deal, Qualcomm gave Amazon a warrant to buy 25 million Qualcomm shares at $161.26 each, unlocking in stages as Amazon's chip purchases climb toward $60 billion through 2036. Qualcomm said the partnership should help it reach $5 billion in data-center revenue by fiscal 2027 and $15 billion by fiscal 2029.

Why it matters

Qualcomm has spent years trying to prove it can succeed outside of smartphones, and this deal gives it a second major cloud customer, alongside Meta, for its data-center chips. For everyday investors, it signals that the race to build AI computing power is spreading beyond Nvidia and Amazon's own in-house chips to more suppliers, which could mean more competition and potentially cheaper AI infrastructure over time. The warrant structure also ties Amazon's financial interests directly to how much hardware it actually buys from Qualcomm.

Who this affects

Marketbullish Medium impact: AI infrastructure investors see the custom-chip market widen.
Companybullish High impact: Qualcomm shareholders gain as data-center credibility improves sharply.
Competitorsmixed Medium impact: Broadcom, Marvell face a new rival for AWS work.
Industrybullish Medium impact: Hyperscalers diversify AI chip supply beyond Nvidia and Broadcom.