Qualcomm's share price rose nearly 6 percent in the minutes after the U.S. market opened, following the company's announcement of a strategic agreement with Amazon Web Services (AWS). Under the deal, Qualcomm and AWS will collaborate on "custom silicon across multiple generations" to build out AWS's artificial intelligence infrastructure, with a particular focus on inference workloads.
According to the joint statement, the partnership combines Amazon's comprehensive, secure and cost-effective AI infrastructure with Qualcomm's experience in energy-efficient processing, chip design and system-level integration. The agreement is notable for Qualcomm because it secures the confidence of another large cloud provider in the company's data-center ambitions.
Qualcomm's push into data centers and product roadmap
Historically known for processors in smartphones and mobile devices, Qualcomm made a clear move into the data-center market in June when it unveiled the Dragonfly C1000 processor designed for data-center use. Qualcomm says the Dragonfly C1000 was built specifically for agent-based artificial intelligence workloads, aiming to deliver high compute performance at low energy consumption. Meta is also expected to deploy the chip, starting in 2028.
The company has set a target of $15 billion in data-center revenue for its fiscal year 2029 and plans to introduce multiple new products in the segment, including a dedicated AI chip.
Market implications
The partnership with AWS is particularly significant because Amazon—like Meta—spends hundreds of billions of dollars annually on artificial intelligence infrastructure, representing substantial potential demand and a strong reference customer for Qualcomm in the data-center market.
Following the announcement, Qualcomm's stock climbed about 6 percent on U.S. exchanges in the minutes after the opening, reflecting an immediate positive market reaction.
This article was prepared with the assistance of an AI tool; the final content was edited and verified by our journalist.
