Qualcomm shares jump 10% after announcing AWS data center partnership

Qualcomm shares jumped 10% on Tuesday after the company announced a data center infrastructure partnership with Amazon Web Services, a major win as the chipmaker tries to take on Nvidia in the AI market.

According to a press release, Qualcomm is working with Amazon "across multiple generations of customized silicon" help build out AWS' AI infrastructure.

"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," the statement said.

Qualcomm is known for making processors that power smartphones and other mobile devices. But the company made a big splash in June, when it revealed a central processing unit for data centers called Dragonfly C1000, and said that Meta would use it when it starts production in 2028.

The chipmaker said the new CPU was built for agentic AI and focuses on offering computing performance without using too much power. Qualcomm said at the time that it's targeting $15 billion in data center sales in fiscal 2029, and pointed to a roadmap for going after the market with several different products, including an AI chip and a product that will tie multiple chips together.