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Qualcomm's Amazon Deal to Drive Strong Revenue Growth in FY2027-2028
Qualcomm's Chief Financial Officer stated on September 8 that the company's deal with Amazon will drive strong year-over-year revenue growth in fiscal years 2027 and 2028. The announcement comes as Qualcomm targets $5 billion in data center revenue in fiscal 2027 and $15 billion in fiscal 2029, with total non-handset revenue targeted at $40 billion by fiscal 2029. Amazon could purchase up to $60 billion in AI chips for data centers and related products from Qualcomm, according to reports. The deal will help Amazon Web Services expand its AI inference infrastructure. Qualcomm is planning to launch AI acceleration chips and interconnect products that link multiple chips together. Following Meta's support for Qualcomm's AI chips, Amazon's backing represents another major endorsement from a hyperscale cloud provider. QCOM rose 3.91% on the news, while AMZN edged down 0.44%.