Qualcomm CFO on Amazon AI Deal, Data Center Strategy

Summary

Qualcomm CFO Akash Palkhiwala discusses the company's new long-term strategic deal with Amazon AWS to develop multiple generations of custom AI chips and supply optical connectivity, targeting about $60 billion in revenue over ten years. He argues Qualcomm's low-power, high-performance data center portfolio and additional hyperscaler engagements position it well for AI data center growth. Palkhiwala also sees AI expanding from data centers to edge devices such as AI-enabled phones and wearable devices, creating further Qualcomm opportunities. He says tariff developments currently have no material impact.

• Qualcomm and Amazon announced a long-term multi-generation custom AI chip and optical connectivity deal.
• The Amazon engagement targets about $60 billion in revenue over ten years with warrants.
• Qualcomm sees the deal as a foundation for its data center business and confidence in 2027/2028 growth.
• Palkhiwala highlights Qualcomm's high-performance, low-power chip advantage as power matters in data centers.
• Qualcomm is also working with Meta on CPUs and another global hyperscaler on custom chips.
• Edge devices such as AI-enabled phones and personal AI wearables are viewed as a future opportunity for Qualcomm.
• Tariff developments are evolving but currently have no material impact, according to the CFO.