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StocksMediumUpdated•Originally published 8 September 2026•Updated 8 September 2026•
2 min read

Qualcomm Gains About 4% on Amazon AI-Chip Deal With Purchase-Linked Warrant

Key Facts

1Qualcomm rose about 4% after climbing as much as 10% in early trading.
2The collaboration includes optical connectivity extending to 1.6 terabits per second.
3The warrant allows Amazon to acquire up to 25 million QCOM shares at a $161.26 exercise price.
4A total of 3.75 million shares vested at issuance; other tranches are tied to payments of up to $60 billion, and the warrant expires on September 3, 2036.

Qualcomm shares rose about 4% on Tuesday, September 8, 2026, after the company announced a multi-generation collaboration with Amazon to develop customized silicon at scale for AWS's AI infrastructure. The stock had climbed as much as 10% in early trading before paring its advance.

The companies will work together on custom silicon for AI inference, the stage in which trained models generate responses or predictions. The collaboration also covers optical-connectivity solutions extending to 1.6 terabits per second, using Qualcomm's SerDes and optical digital-signal-processing technologies.

A Qualcomm filing with the US Securities and Exchange Commission showed that the company issued an Amazon affiliate a warrant to acquire up to 25 million QCOM shares at an exercise price of $161.26 per share. The warrant gives Amazon the right to buy the shares but does not oblige it to purchase the full amount.

Of the warrant shares, 3.75 million vested at issuance based on initial purchase commitments. The remaining tranches are tied to commercial arrangements, binding orders and actual purchases involving cumulative payments of up to $60 billion, while the warrant expires on September 3, 2036.

In the other direction, Qualcomm plans to deepen its use of AWS AI infrastructure, including Amazon Bedrock, for electronic-design-automation workloads. The company is targeting shorter chip-design cycles, making the collaboration broader than a component-supply arrangement for data centers.

The companies did not disclose a deployment timetable or an expected revenue contribution. Investors will therefore focus on whether the agreement produces binding orders and actual purchases, because those milestones govern most of the warrant's vesting and will determine the collaboration's commercial scale.