AI infrastructure stocks rally on deal announcements from Qualcomm, Corning
Shares of Qualcom, Corning, Intel, Advanced Micro Devices and others tied to the AI infrastructure trade popped on Tuesday.
TL;DR
- Corning and Qualcomm stock prices surged on Tuesday due to infrastructure deals boosting data center spending confidence.
- Chipmakers Intel and AMD, along with Hewlett Packard Enterprise and Coherent, also saw significant gains.
- Corning announced a multibillion-dollar partnership with Verizon for fiber-optic cables and has prior deals with Amazon and Nvidia.
- Qualcomm issued warrants to Amazon for up to $4 billion in stock as part of a pact to build AI infrastructure, with Amazon Web Services purchasing up to $60 billion in Qualcomm's technology.
- Qualcomm expects revenue from Amazon chip manufacturing to begin in the December quarter, contributing to its $15 billion data center revenue target for fiscal 2029.
- AMD increased its market outlook for the semiconductor industry to $3 trillion by 2030.
- Public opposition to data center construction, with 71% of Americans opposing them in their communities, is becoming a risk factor for AI companies planning IPOs.