Amazon AWS AI hardware deal lifts Qualcomm stock toward $197.42 resistance

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Qualcomm jumps 3.28% after Amazon deal

Highlights

Qualcomm secured a multiyear deal to supply custom AI inference silicon and high-speed optical connectivity to Amazon AWS data centers.
The agreement expands Qualcomm’s presence in AI infrastructure and diversifies revenue beyond its established segments, supporting market momentum for its data center business.
Shares of Qualcomm jumped 3.28% to $190.9 on strong bullish technical signals, with an expected range of $183.9 to $197.42 in the near term.

Amazon AI chip deal bolsters Qualcomm market position and outlook

Qualcomm has signed a multiyear agreement with Amazon to supply custom AI inference silicon and high-speed optical connectivity for integration into AWS data centers, according to Simplywall. This deal provides Qualcomm with expanded access to the large-scale AI infrastructure segment, positioning it as a critical supplier for Amazon's cloud platform and diversifying its revenue beyond established markets. As a result, the agreement is seen as a major catalyst, supporting demand expectations for Qualcomm's AI data center business and contributing to current market momentum.

Mixed oscillator momentum as technical supports reinforce bullish bias

On the H1 chart, QCOM is trading above the MA-20 at $185.37 and MA-50 at $180.81, with additional support seen at the MA-200 on the daily timeframe at $168.39. The Ichimoku Kijun level at $180.9 serves as immediate support. MACD signals a strong buy and ADX remains in buy mode, while RSI is at 50.26 in buy territory and CCI is neutral. Both Stochastic RSI and Bull/Bear Power indicate oversold conditions despite the recent surge, and Awesome Oscillator is neutral, suggesting mixed momentum among oscillators.

Range-bound consolidation as price nears critical breakout levels

In the short term, QCOM is expected to trade within a typical volatility band from $183.9 to $197.42. The baseline scenario is for the stock to consolidate between these bounds. If the price breaks above $197.42, an additional upward move is likely. Conversely, a drop below $183.9 would open the way for a correction toward lower support levels.

Viktoras Karapetjanc, expert at Traders Union, sees Qualcomm’s confirmed multiyear deal with Amazon as a robust endorsement of its expanding role in the AI data center market. He believes this agreement fundamentally strengthens Qualcomm’s growth prospects and diversifies its revenue streams. With technical momentum and strong institutional sentiment supporting the stock above key levels, the near-term outlook remains positive. 'This Amazon partnership sets a new demand baseline for Qualcomm, and I expect sustained interest from investors as the AI cycle accelerates,' he says.

Previously it was reported that Qualcomm’s agreement with Amazon was expected to drive long-term growth in its AI data center segment and reflected overall price strength despite emerging mixed momentum signals. The current analysis adds that, while technical indicators remain mixed, the key level to watch is a breakout above $197.42, which would signal a further upside move for QCOM.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.