Qualcomm said it is working with Amazon Web Services to build next-generation data-center infrastructure using "multiple generations of customized silicon" to accelerate AI inference.
The tie-up lifted its stock, which was up 10% pre-market, but opened just 5% higher.
Qualcomm, known for smartphone processors, described the pact as part of a deliberate push into servers.
And it said in a press release it will support AWS across multiple product cycles and inference workloads while pursuing a data-center business that management has discussed as targeting $15 billion in sales by fiscal 2029.
CPU launch
The move follows Qualcomm’s June unveiling of a server CPU called the Dragonfly C1000, which the company said Meta plans to use in production in 2028.
Qualcomm said the AWS collaboration will be specifically focused on inference and system-level integration.
Investors view the Amazon win as validation that Qualcomm can build a second growth engine beyond mobile after adding Meta and now AWS as hyperscaler customers while Nvidia remains the sector’s dominant GPU supplier dominating the market.
Bank of America’s forecast cited in reporting, that the CPU market could grow from about from $27 billion to $60 billion by 2030, underpins why hyperscalers are courting alternative silicon vendors.
