Qualcomm CFO says Amazon deal will boost revenue growth in 2027-28

Qualcomm and Amazon announced a multi-generational collaboration to develop customized silicon for AI inference workloads inside AWS data centers. Qualcomm’s CFO and COO Akash Palkhiwala pointed to the Amazon arrangement as a key catalyst for the company’s financial trajectory, signaling a significant revenue ramp in data centers expected during fiscal years 2027 and 2028.

The deal structure

Qualcomm granted Amazon a warrant for up to 25 million shares priced at $161.26 each, a package potentially worth roughly $4B. The warrants vest in tranches tied to commercial arrangements linked to up to $60B in purchases, with an initial 3.75 million shares vesting at issuance.

The collaboration extends beyond processors into high-speed optical connectivity solutions capable of reaching 1.6 terabits per second.

Revenue from these custom silicon engagements is expected to begin flowing in the December quarter, with wafer production already underway for initial hyperscaler projects.

The bigger strategy: life after smartphones

Revenue from Apple-related products has been declining, and Amazon now joins Meta and Microsoft as key clients in Qualcomm’s push to become a serious player in data center silicon.

Qualcomm is aiming for $5B in data center revenue during fiscal 2027, scaling to $15B by fiscal 2029. The company’s broader goal is to hit $40B in non-handset revenue by fiscal 2029.

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