Why Qualcomm Share Price is Trending: Amazon AI Deal and Data-Centre Pivot

Interest in the qualcomm share price has surged in India following a major strategic shift by the chipmaker to diversify beyond its traditional smartphone dominance. The primary driver is a newly announced multi-generational collaboration with Amazon, aimed at building AI data-centre infrastructure.

The Amazon Collaboration: A $60 Billion Opportunity

On September 16, 2026, it was revealed that Qualcomm and Amazon have entered a partnership where Amazon Web Services (AWS) is expected to utilize Qualcomm’s customized AI chips specifically for inference workloads. Beyond chips, Qualcomm will provide high-speed optical connectivity solutions for data centres. According to The Economic Times, the total commercial opportunity from this relationship could reach up to $60 billion over the next decade.

A unique financial component of this deal involves equity warrants. Qualcomm has granted Amazon the right to acquire up to 25 million shares at an exercise price of $161.26 per share, a potential value of approximately $4.03 billion. Notably, the vesting of these warrants is not automatic; it is linked to commercial milestones and Amazon's actual purchases of Qualcomm's products and services.

The Pivot to Data Centres: Revenue Targets

Qualcomm is aggressively pursuing a "data-centre pivot" to reduce its reliance on the volatile smartphone market. This is critical as the company recently saw handset revenue fall 20% year-on-year to $5.09 billion in fiscal Q3. To counter this, CFO Akash Palkhiwala has outlined ambitious revenue targets for the data-centre segment:

• Fiscal 2027: Target of approximately $5 billion in revenue, with $1 billion coming from new custom-chip customers.
• Fiscal 2029: Target of more than $15 billion in data-centre revenue.
• Overall Diversification: A goal of $40 billion in total non-handset revenue by FY2029, spanning automotive, IoT, and AI infrastructure.

Analyst Outlook and Price Targets

Wall Street remains divided on whether these AI ambitions are already "priced in" to the stock. While some analysts are bullish, others urge caution regarding the company's late entry into the data-centre market compared to its peers.

Analyst/Firm	Rating	Price Target	Key Perspective
StoneX (Cody Acree)	Buy	$270	Strong focus on AI growth potential.
Piper Sandler (David O'Connor)	Neutral	$190	AI opportunity is real, but wins may already be reflected in valuation.
RBC	N/A	$180	Raised target from $160 following recent developments.

Investors are now closely watching the December 2026 quarter, as Qualcomm expects revenue from the Amazon relationship to begin during that period. The success of its High Bandwidth Compute (HBC) architecture will also be a key metric for future growth.