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Amazon Just Handed Qualcomm a Slice of AWS’s AI Buildout

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Core Development: Amazon Just Handed Qualcomm a Slice of AWS’s AI Buildout
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AWS tapped QCOM for multi-generational custom AI silicon, backed by a $496B backlog and $53B in quarterly capex fueling the buildout.

Broadcom projects roughly $115B in AI revenue for fiscal 2027, but AWS dual-sourcing with Qualcomm signals hyperscalers are fracturing incumbent silicon moats.

Qualcomm targets $15B in data-center revenue by fiscal 2029 but faces lower gross margins on custom chips and a 20% handset revenue decline.

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