Qualcomm shares surge around 4.5% as landmark Amazon AI chip deal fuels buying

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Qualcomm surges 4.48% today on Amazon deal

Highlights

Qualcomm secured a long-term deal with Amazon that includes potential purchases of up to $60 billion in AI data center chips.
Amazon holds warrants to buy about $4 billion in Qualcomm shares at a predetermined price as part of the agreement.
Shares of Qualcomm traded at $184.82, gaining 4.48% with bullish momentum and overbought signals, with an expected range of $179.71 to $189.93 in the next five trading days.

Amazon pact and warrants expand Qualcomm’s AI infrastructure push

Qualcomm disclosed a major long-term agreement with Amazon, under which Amazon may purchase up to $60 billion in Qualcomm's AI data center chips and related products. The deal includes warrants granting Amazon an option to acquire approximately $4 billion in Qualcomm shares at a set price. This collaboration aims to expand Qualcomm's presence in the AI infrastructure segment through integration with Amazon Web Services (AWS).

Anton Kharitonov, expert at Traders Union, sees Qualcomm's recent rally as driven more by speculative enthusiasm than by sustainable fundamentals. He notes the deal with Amazon provides a one-time headline boost but warns that reliance on a single partnership exposes risk if demand weakens or terms shift. Technically, the overbought conditions and persistent buying pressure make any late entry questionable. Kharitonov is wary of the extended price above $184 and highlights the elevated volatility as a red flag. "The market is overreacting to headline news — chasing at these levels ignores building downside risks."

Viktoras Karapetjanc, expert at Traders Union, believes Qualcomm’s partnership with Amazon validates long-term demand for AI infrastructure. He sees institutional confidence supported by robust technical structure and strong momentum, with buyer flows reinforcing a positive outlook. Karapetjanc expects further growth possibilities, especially if the $185.11 level gives way. "The bullish structure remains intact and market participants should watch for fresh breakout setups to the upside."

Jainam Mehta, market strategist, notes that Qualcomm’s price action shows a potential scenario for tactical trades. He observes that consolidation near the highs may precede another breakout, but overbought oscillators warn of a short-term pullback risk. Mehta favors scenario-based positioning until the price either clears $185.11 or retreats to support. "Contrarian entries may emerge if momentum fades and price tests the lower boundary near $179.71."

Overbought signals intensify as momentum and buyers dominate

Qualcomm is trading well above its 20-, 50-, and 200-day moving averages ($166, $168.59, and $168, respectively), confirming a bullish posture across short-, medium-, and long-term trends. The near-term ceiling is defined by the session high at $185.11, with the nearest support at $182.26, the week's high, as broader trend confirmation comes from the moving averages and Ichimoku Kijun ($168.74), all well below the current price. Momentum readings remain firm with the Moving Average Convergence Divergence (MACD) signaling "Buy" and the Average Directional Index (ADX) showing a neutral trend. The Relative Strength Index (RSI) and Commodity Channel Index (CCI) both indicate overbought conditions, echoed by an elevated Stochastic RSI and Bull/Bear Power (BBP) favoring buyers. BBP registers strong buyer dominance and issues an overbought warning. The Awesome Oscillator (AO) confirms ongoing upside momentum. Qualcomm trades at $184.82, rising $7.93 or 4.48% on the day, having opened with an upside gap of about $2.58 (1.46%) and showing strength near the day's high. Intraday volatility stands at 3.21%. The intraday tone is clearly bullish with steady pressure from buyers and momentum indicators broadly supporting the move, though overbought signals warrant caution for late entries.

Previously it was reported that Qualcomm’s alliance with Amazon was expected to position the company for long-term growth in the AI data center market. With the new $60 billion chip supply agreement and corresponding technical breakout, traders should closely watch for a sustained move above the $185.11 resistance level as confirmation of continued upside momentum.

Source of Data: QCOM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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