Amazon Gives Qualcomm a Major AI Boost With $60B Custom Chip Deal — Analyst Calls It a ‘Huge $QCOM Win’ -

Patrick Moorhead, CEO and Founder of MoorInsightsStrategy, called the agreement between Qualcomm Inc. (NASDAQ:QCOM) and Amazon.com Inc.‘s (NASDAQ:AMZN) Amazon Web Services a “net-net huge $QCOM win” as the semiconductor company expands into data center compute while diversifying away from Apple Inc.‘s (NASDAQ:AAPL) product revenue.

Expanding Custom AI Infrastructure

In the strategic SEC filing, Amazon received a ten-year warrant expiring Sept. 3, 2036, to purchase up to 25 million Qualcomm common shares at an exercise price of $161.26 per share. The vesting framework covers up to $60 billion in commercial payments, with an initial 3.75 million shares vesting at issuance based on binding commitments.

Moorhead noted that while the deal “does not establish a guaranteed $60 billion order,” it spans custom silicon for artificial intelligence inference and optical connectivity extending up to 1.6 Terabits. Additionally, Qualcomm will leverage AWS Bedrock infrastructure to shorten chip design cycles.

Revenue Targets and Diversification