Qualcomm Eyes Server Market Again As Smartphone Market Cools Down; Amazon Could Be A Potential Client - Qualcomm (NASDAQ:QCOM), Amazon.com (NASDAQ:AMZN)

Qualcomm Inc QCOM took another run at the server processors market to tap a $28 billion industry and decrease its reliance on smartphones, Bloomberg reports.
Qualcomm sought customers for a product stemming from last year's purchase of chip startup Nuvia.
Leading server chip buyer Amazon.com Inc's AMZN AWS business has agreed to look at Qualcomm's offerings.
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CEO Cristiano Amon aimed to turn Qualcomm into a broader provider of semiconductors rather than just the top maker of smartphone chips.
Qualcomm has Nuvia, staffed with chip designers from companies like Apple Inc AAPL.
Amon, who acquired the business for about $1.4 billion in 2021, saw it help revitalize Qualcomm's high-end offerings for smartphones and personal computers.
The move implies Qualcomm has a much bigger-ticket item to sell. The highest-end server processors carry prices of more than $10,000 per chip.
Spending on cloud computing infrastructure as Amazon, Alphabet Inc GOOG GOOGL Google, and Microsoft Corp MSFT used to whisk data totaled $73.9 billion in 2021 as per IDC.
According to Bloomberg analyst Mandeep Singh, data-center processors generate $28 billion a year.
"Qualcomm's re-entry to the Arm server market broadens its reach into one of the bright spots in semiconductors," he said.
Giant cloud data centers are increasingly embracing processors using designs from Qualcomm's essential partner SoftBank Corp SFTBY Arm Ltd to Intel Corp's INTC dismay.
Amazon has addressed the power consumption issue of data centers by building its chips based on Arm designs.
But Amazon also still uses chips from Intel, Advanced Micro Devices Inc AMD, and Nvidia Corp NVDA, with Qualcomm seeing an opportunity to carve out a niche among those suppliers.
Qualcomm's previous attempt to tap the market failed due to a critical executive exodus.
Price Action: QCOM shares traded lower by 1.22% at $149.54 premarket on the last check Friday.

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