Qualcomm shares jumped 10 percent on Sept. 8 (local time) after it announced a data centre infrastructure partnership with Amazon Web Services (AWS).

CNBC reported that Qualcomm will jointly develop custom silicon with AWS to build infrastructure optimised for AI inference.

Qualcomm said it will combine AWS AI infrastructure with its low-power processing, chip design and system-level integration capabilities. It said it aims to respond as demand rapidly grows for power-efficient infrastructure for computing, storage devices, networks, memory bandwidth and more, driven by increasing AI workloads.

Qualcomm unveiled its Dragonfly C1000 central processing unit (CPU) for data centres in June. It has said Meta will use the chip once production begins in 2028.

The company said the Dragonfly C1000 is designed for agentic AI and supports high-performance computing without significantly increasing power consumption. Qualcomm set a fiscal 2029 data centre revenue target of $15 billion and also unveiled a roadmap that includes AI chips and products that connect multiple chips.

With the AWS partnership, Qualcomm secured support from another hyperscaler after Meta. Like Meta, Amazon also has annual capital spending for AI infrastructure that reaches hundreds of billions of dollars.