TLDR
- Qualcomm and Amazon announced a collaboration to build custom AI chips for large-scale data centers, focused on inference workloads.
- Qualcomm issued Amazon a stock warrant to buy up to 25 million QCOM shares at $161.26 each.
- The warrant is tied to potential revenue of up to $60 billion and expires in September 2036.
- The two companies are also co-developing optical connectivity components, including a next-gen 1.6T solution.
- QCOM stock jumped as much as 9.5% on the news, putting it back in positive territory for 2026.
Qualcomm stock shot up as much as 9.5% on Tuesday after the company announced a multi-generational chip collaboration with Amazon, giving investors a piece of good news the stock sorely needed.
QCOM opened up around 5.6% shortly after the market open before extending gains. The stock had been lagging the broader chip sector heading into the announcement.
The deal centers on building custom AI silicon for Amazon’s large-scale data centers. The chips will focus on inference, the process by which AI models generate outputs based on training data.
Qualcomm will work directly with Amazon Web Services to design energy-efficient chips built for massive AI infrastructure. AWS brings the scale; Qualcomm brings decades of low-power chip design.
QUALCOMM AND AMAZON PARTNER ON CUSTOM AI DATA CENTER CHIPS
Qualcomm $QCOM and Amazon have announced a multi-generational collaboration to develop customized silicon for AWS AI infrastructure, with an initial focus on large-scale AI inference.
The companies will also work on… pic.twitter.com/gMY7jOFZHE
— Wall St Engine (@wallstengine) September 8, 2026
Beyond compute, the two companies are co-developing high-speed optical connectivity solutions. That includes a next-generation 1.6T solution capable of moving data at 1.6 terabits per second.
Qualcomm’s advanced SerDes and optical DSP technologies sit at the center of that connectivity effort, aimed at handling the growing data demands inside modern AI data centers.
The Warrant Deal
As part of the agreement, Qualcomm issued Amazon a stock warrant giving it the option to purchase up to 25 million QCOM shares at $161.26 each. The warrant expires in September 2036.
The warrant is tied to up to $60 billion in potential revenue, according to Qualcomm’s 8-K filing. It signals a long-term financial commitment between the two companies, not just a short-term supply agreement.
Qualcomm CEO Cristiano Amon said the deal reflects where AI infrastructure is heading. “As AI demand accelerates, data center infrastructure will require advances in both computing and connectivity to deliver greater performance with more efficiency,” he said.
AWS Vice President Prasad Kalyanaraman added that the collaboration “builds on a strong foundation of partnership and reflects our shared commitment to pushing the boundaries of what’s possible.”
Qualcomm’s 2026 Performance
Despite Tuesday’s jump, Qualcomm had been a laggard in 2026. The PHLX Semiconductor Index is up 68% year to date, while QCOM had been sitting in negative territory before Tuesday’s news.
The stock is now back in positive territory for the year, though it still has ground to make up against semiconductor peers.
As part of the expanded deal, Qualcomm will also increase its own use of AWS infrastructure, including Amazon Bedrock, to accelerate its chip design workflows and cut development cycles.
Amazon stock slipped fractionally on the day, down less than 1%.
QCOM was trading up approximately 3.86% in afternoon trading on Tuesday, September 8, 2026.
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