Qualcomm gained as much as 2.9 per cent to $152.91 in New York trading after Bloomberg reported the chip news. Photograph: Pau Barrena/BloombergQualcomm is taking another run at the market for server processors, according to sources, betting it can tap a fast-growing industry and decrease its reliance on smartphones.
The company is seeking customers for a product stemming from last year’s purchase of chip startup Nuvia, according to the sources. Amazon’s AWS business, one of the biggest server chip buyers, has agreed to take a look at Qualcomm’s offerings, they said.Qualcomm gained as much as 2.9 per cent to $152.91 in New York trading after Bloomberg reported the news. The shares had been down 19 per cent this year through Wednesday, part of a broader slide for chip stocks.
Chief executive Cristiano Amon is trying to turn Qualcomm into a broader provider of semiconductors, rather than just the top maker of smartphone chips. But an earlier push into the server market was abandoned four years ago under his predecessor. At the time, the company was trying to cut costs and placate investors after fending off a hostile takeover by Broadcom.
This time around, Qualcomm has Nuvia, staffed with chip designers from companies such as Apple. Amon, who acquired the business for about $1.4 billion in 2021, has said that its work will help revitalise Qualcomm’s high-end offerings for smartphones. But Nuvia was founded as a provider of technology for the server industry. — Bloomberg