We are better together, Qualcomm up 3% on Amazon AI pact

Qualcomm Technologies (NASDAQ: QCOM) shares were up roughly 3% Tuesday afternoon—holding steady gains after pulling back from an earlier 9.5% intraday surge—following the announcement of a landmark multi-generational collaboration with Amazon. Under the agreement, Qualcomm will issue a warrant to Amazon to purchase up to 25 million shares of QCOM common stock, aligning the two tech giants for the long haul.

Speaking at a Goldman Sachs conference in San Francisco, Qualcomm Chief Financial Officer Akash Palkhiwala emphasized that the company is rapidly transforming beyond its smartphone roots.

The financial impact of the Amazon deal will be immediate. “We’ll start having revenue with Amazon starting the December quarter, and we’re already in production with them,” Palkhiwala said. That early momentum gives the chipmaker what the CFO described as “very high confidence” in hitting its $5 billion data center revenue target for fiscal 2027. “The year starts in about a month for us… and we have POs, we’re building the chips,” he added.