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Qualcomm deal with Amazon Web Services lifts shares on custom silicon pact
The agreement includes warrants for up to 25 million Qualcomm shares, with most vesting based on AWS purchases of hardware and services up to $60 billion through September 2036.
Qualcomm shares jumped after the company announced a multi-generational agreement with Amazon Web Services to engineer custom silicon and optical networking solutions. In the session, Qualcomm stock rose about 9.5% intraday, opening near $180.40 before settling around $174 per share, according to MarketBeat Ratings.
The commercial structure described in regulatory filings ties equity to performance through warrants granted to Amazon. Qualcomm will allow Amazon to acquire up to 25 million shares of common stock at an exercise price of $161.26 per share, with an initial 3.75 million shares vesting at signing and the remaining 21.25 million shares vesting across tiers linked to AWS purchases.
The purchases are projected up to $60 billion over a 10-year window through September 2036. MarketBeat Ratings also highlights that Amazon is pursuing custom silicon for AI inference and selected Qualcomm as part of that effort.
Separately, MarketBeat Ratings points to Qualcomm’s third-quarter earnings results as context, noting revenue of about $9.95 billion, down roughly 4% year over year, driven in part by a 20% year-over-year decline in mobile handset processor sales. The new pact is presented as evidence that Qualcomm is diversifying beyond consumer electronics cycles.