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FinanceQualcomm shares surge 10% on data center infrastructure deal with Amazon Web Services
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Qualcomm shares surged 10% on September 8, 2026, after announcing a multi-generational data center infrastructure partnership with Amazon Web Services (AWS). The deal focuses on customized silicon to build out AWS' AI infrastructure, specifically for inference workloads. This marks a major win for Qualcomm as it attempts to enter the data center market dominated by Nvidia during the AI boom. Qualcomm, known for smartphone processors, previously revealed its Dragonfly C1000 CPU for data centers in June 2026, with Meta planning to use it starting in 2028. The company targets $15 billion in data center sales by fiscal 2029. The partnership with Amazon, a hyperscaler investing hundreds of billions annually in AI infrastructure, signals confidence in Qualcomm's power-efficient processing and system-level integration capabilities.
Source report
Qualcomm shares jumped 10% on Tuesday following the announcement of a data center infrastructure partnership with Amazon Web Services (AWS), marking a significant win for the chipmaker as it seeks to challenge Nvidia's dominance in the AI market.
Key Details
- Qualcomm is collaborating with Amazon "across multiple generations of customized silicon" to support AWS's AI infrastructure, with a specific focus on inference workloads.
- The partnership aims to address growing demand for compute, storage, networking, memory bandwidth, and energy-efficient infrastructure.
Official Statement
According to a press release from Qualcomm:
"As AI workloads grow exponentially — driving unprecedented demand for compute, storage, networking and memory bandwidth, and energy-efficient infrastructure — the collaboration brings together Amazon's comprehensive, secure, and price-performant AI infrastructure with Qualcomm Technologies' leadership in power-efficient processing, silicon design and system-level integration."
Qualcomm's Data Center Ambitions
Qualcomm, best known for processors powering smartphones and mobile devices, has been aggressively expanding into the data center market:
- In June 2026, the company unveiled the Dragonfly C1000, a central processing unit (CPU) designed for data centers.
- Meta has committed to using the Dragonfly C1000 when production begins in 2028.
- The CPU is built for agentic AI, emphasizing high computing performance with low power consumption.
- Qualcomm has set a target of $15 billion in data center sales by fiscal 2029.
- The company's roadmap includes an AI chip and a product that links multiple chips together.
Significance of the AWS Deal
By partnering with AWS, Qualcomm gains a vote of confidence from another major hyperscaler. Like Meta, Amazon is investing hundreds of billions of dollars annually in AI infrastructure capital expenditures.
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Qualcomm stock surges 10% on multi-generational AI chip deal with Amazon Web Services