Qualcomm Gains on $60B Amazon AI Chip Deal

Qualcomm (NASDAQ: QCOM) has emerged as one of the strongest performers in Investing.com’s AI-powered Strategies portfolio after securing a major artificial intelligence infrastructure partnership with Amazon Web Services.

Qualcomm shares climbed from $165.71 on September 1 to $180.15 by September 14, representing an 8.71% monthly gain. The semiconductor company remains an active holding in four U.S. Strategies, including Beat the S&P 500, which uses AI to select 20 S&P 500 stocks expected to outperform each month.

The rally accelerated after Amazon announced a multi-generation agreement with Qualcomm on September 8. Under the partnership, AWS can purchase up to $60 billion worth of Qualcomm AI data-center chips and related products. Amazon also received $4 billion in warrants allowing it to acquire Qualcomm shares at $161.26.

QCOM jumped as much as 6.9% to $180.41 following the announcement. Analyst optimism provided additional support, with RBC Capital raising its Qualcomm price target from $160 to $180 on September 9 while maintaining a Sector Perform rating. Piper Sandler upgraded the stock on September 11, when shares gained another 3.23%. The average Wall Street price target subsequently reached approximately $194.

Qualcomm is targeting $15 billion in data-center revenue by 2029 as it expands deeper into the AI infrastructure market. Its strategy includes 1.6-terabit optical connectivity, while broader chip price increases could support margins as the Snapdragon X2 Elite platform ramps.