Qualcomm Shares Rise on Multi-Generation AI Chip Partnership with Amazon

Qualcomm Technologies shares traded higher on Tuesday after the company announced a multi-generation product collaboration with Amazon to build next-generation AI data center infrastructure.

Qualcomm stock was among the best-performing stocks today. Why is QCOM stock up today?

Qualcomm Expands AI Collaboration with Amazon

Qualcomm and Amazon will collaborate on custom chips across multiple generations to support AWS's growing AI infrastructure, with both companies joining forces in AI inference. The two companies will also develop advanced optical connectivity solutions with speeds up to 1.6T and future generations, leveraging Qualcomm's SerDes and optical DSP technology to support high-bandwidth interconnects within Amazon's data center networks. As part of the expanded collaboration, Qualcomm plans to deepen its use of AWS AI infrastructure, including Amazon Bedrock, for electronic design automation workloads to shorten chip design cycles.

"As AI demand accelerates, data center infrastructure needs to advance in both compute and connectivity to deliver greater performance with higher efficiency," said Cristiano Amon, President and CEO of Qualcomm. "Qualcomm is excited to collaborate with AWS on custom silicon and connectivity solutions, leveraging our decades of leadership in advanced processing and energy-efficient computing to deliver breakthrough performance and power next-generation AI infrastructure."

Qualcomm Stock Surges

QCOM stock movement: As of the time of writing, Qualcomm shares were up 6.92% at $180.41.