Qualcomm Climbs 4% as AWS Data Center Deal Draws Analyst Praise While MediaTek Launches 2nm Chip in Direct Challenge

Qualcomm shares gained roughly 3.9% on September 15 as Wall Street focused on the company's expanding data center ambitions following its multi-generational collaboration with Amazon to develop customized AI silicon. StoneX reiterated a Buy rating with a $270 price target, citing broadening hyperscale customer exposure. The Amazon agreement includes a warrant allowing Amazon to purchase up to 25 million QCOM shares, with vesting tied to commercial milestones and potential purchases that could reach as much as $60 billion.

On the competitive front, MediaTek directly challenged Qualcomm in premium smartphones by launching the Dimensity 9600 Pro, its first mobile processor built on TSMC's 2-nanometer process, alongside the 3-nanometer Dimensity 9600M for the broader flagship tier. The 9600 Pro's neural processing unit processes generative-AI prompts 51% faster than the prior generation. MediaTek's market capitalization has already surpassed Qualcomm's this year, and the company reported August revenue up 44% year over year. MediaTek also raised $3.9 billion in a convertible offering in which Nvidia contributed $3.5 billion and Alphabet participated, and its first AI accelerator for a major US cloud provider enters mass production in the fourth quarter.

Qualcomm's AWS collaboration also drew notice for encroaching on Marvell Technology's territory, though analysts maintained a buy case on Marvell given its 46% year-over-year data center revenue growth in Q2 FY2027 and management's guidance lifting FY2027 revenue to roughly $12 billion and FY2028 to roughly $18 billion. Smartphone chip stocks broadly rallied on the day, with Skyworks up 11% and Qorvo rising 7% alongside Qualcomm's 4% gain, even as large-cap technology slipped. Wells Fargo added a cautionary note, cutting its S&P 500 target to 7,700, downgrading the technology sector to Equal Weight, and warning that semiconductor stocks could retest their July lows, with elevated options activity flagged in both Qualcomm and Broadcom. Qualcomm is also set to pay its quarterly dividend on September 24 to shareholders of record as of September 3.