QCOM Stock Jumps as Qualcomm Announces AI Infrastructure Deal With Amazon

Qualcomm (QCOM) shares are inching higher on Sept. 8 after the chipmaker teamed up with Amazon (AMZN) on customized silicon and connectivity solutions for large-scale artificial intelligence (AI) data centers. 

Investors are cheering the announcement as it strengthens QCOM’s push beyond smartphones and into the fast-growing artificial intelligence infrastructure market. 

Despite today’s gains, however, Qualcomm stock remains down about 30% versus its year-to-date high. 

What We Know About the Amazon Deal

The Amazon deal is constructive for QCOM stock because it exposes the Nasdaq-listed firm to one of the fastest-growing areas of the semiconductor industry — AI inference infrastructure. 

Under the agreement, Qualcomm will work across multiple generations of customized silicon for Amazon Web Services, while also developing high-performance optical connectivity solutions capable of reaching speeds of up to 1.6 terabits per second.

Additionally, Amazon has received warrants to purchase up to about $4 billion worth of Qualcomm shares at $161.26 each, linked to as much as 60 billion in potential business under the collaboration.

The announcement, therefore, reinforces QCOM’s relationship with a major hyperscaler and signals a potentially substantial long-term revenue opportunity.

Should You Load Up on QCOM Stock Today?

Qualcomm shares remain attractive primarily because of the company’s diversification away from smartphones. 

At its June 2026 Investor Day, management raised its fiscal 2029 guidance for non-handset revenue to $40 billion, including more than $15 billion from data centers, $10 billion from automotive and over $14 billion from IoT.

Qualcomm also expects handset revenue to account for only about one-third of QCT revenue by fiscal 2029.

Its automotive business is already showing strong momentum, with Q3 revenue reaching a record $1.6 billion, up a remarkable 61% on a year-over-year basis. 

Investors should also note that QCOM returned $2.3 billion to shareholders through dividends and buybacks in the latest reported quarter, further supporting its appeal while its diversification strategy develops. 

Wall Street’s View on Qualcomm Shares

Crucially, Wall Street remains bullish on QCOM shares for the remainder of 2026 as well. 

The consensus rating on Qualcomm sits at “Moderate Buy,” with the mean price target of roughly $198 indicating potential upside of more than 10% from current levels. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.