EL7.AI
StocksMediumUpdated•Originally published 13 September 2026•Updated 13 September 2026•
2 min read

Qualcomm Partners With Amazon on AI Chips After Setting Data-Center Target Above $15 Billion for 2029

Key Facts

1Qualcomm targets more than $15 billion in data-center revenue in fiscal 2029.
2The QCT business targets $40 billion in non-handset revenue in fiscal 2029.
3Amazon’s warrant covers up to 25 million shares at a $161.26 exercise price, with vesting tied to payments capped at $60 billion.
4A total of 3.75 million shares vested at issuance based on initial purchase commitments.
5QCOM closed at $181.97 on September 11, 2026, within a range of $175.74 to $185.46.

Qualcomm Technologies on September 8, 2026, announced a multi-generation collaboration with Amazon to develop customized silicon at scale for AI data centers, focusing on running models after training. The announcement followed Qualcomm’s June 24 target of more than $15 billion in data-center revenue in fiscal 2029.

The collaboration also covers optical-connectivity solutions extending to 1.6T for data movement within Amazon’s data-center networks. Qualcomm plans to expand its use of AWS infrastructure and Amazon Bedrock for electronic-design-automation workloads, targeting shorter chip-design cycles.

According to Qualcomm’s filing with the U.S. Securities and Exchange Commission, the company issued a warrant on September 3 to an Amazon affiliate to acquire up to 25 million QCOM shares at an exercise price of $161.26 per share. The warrant expires on September 3, 2036.

The $60 billion figure is neither a payment for the warrant nor a fixed purchase commitment of that size. It is the maximum payment threshold tied to commercial arrangements, binding orders and actual purchases of Qualcomm data-center products and services during the warrant’s term. A total of 3.75 million shares vested at issuance based on initial purchase commitments.

The data-center goal forms part of a broader plan to diversify the QCT business beyond handsets. Qualcomm targets $40 billion in non-handset revenue in fiscal 2029, about twice its previous target, including more than $15 billion from data centers, $10 billion from automotive and more than $14 billion from IoT. These are forward-looking targets, not contracted or realized revenue.

Execution depends on a product roadmap that has not yet reached full commercial availability. Qualcomm expects the Dragonfly C1000 processor to become commercially available in 2028, with commercial sampling of AI250 in mid-2027 and AI300 in 2028, making schedule delivery and the conversion of designs into orders critical.

QCOM shares closed at $181.97 on September 11, 2026, after trading between $175.74 and $185.46 during the session, according to EL7’s internal data. Those prices alone cannot isolate the effect of the Amazon announcement from other influences on the stock.

The financial assessment of the agreement will depend on binding orders and actual purchases that unlock additional warrant-share tranches, as well as progress against the product timetable. The 2029 targets also carry execution, demand and competitive risks because they are forward-looking statements rather than guaranteed results.