Qualcomm

Qualcomm and Amazon Web Services have agreed a multi-year partnership to develop custom AI data-center chips with a value of around $60 billion. Under the agreement, Amazon receives option rights to purchase Qualcomm shares worth up to $4 billion. The push into the server market is intended to reduce Qualcomm’s dependence on the saturated smartphone business and expand the company’s strategy toward AI infrastructure. » Plus sur finanzen.net

Amazon receives the right to purchase up to 25 million Qualcomm shares at $161.26 per share; 3.75 million shares are already effective. Additional tranches only become due when Amazon places binding orders and purchases Qualcomm chips, technologies and services. The cooperation aims for custom chips for large AI data centers, optical data transmission of up to 1.6 terabits/s and use of Amazon Bedrock to accelerate chip designs. Analysts view the agreement as potentially important for Qualcomm's expansion beyond the smartphone business, but remain cautious. » Plus sur deraktionaer.de

Qualcomm said AWS will co-develop customized multi-generation AI inference silicon and high-performance optical connectivity, validating its push into data-center business and lifting the stock about 5%. Broadcom also rose on read-through to the custom silicon category, while Amazon shares were flat to down as it adds another supplier. The agreement disclosed no committed volumes, revenue targets or delivery timeline, leaving Qualcomm's valuation exposed if the data-center ramp disappoints. Investors will watch for further details or Amazon commentary to turn the credential into a quantifiable revenue stream. » Plus sur finance.yahoo.com