According to sources familiar with its plans, Qualcomm Inc. is making another attempt to capture the $28 billion server processor market in an effort to wean itself off smartphones.
The persons, who asked not to be named since the conversations are private, claim that the corporation is looking for clients for a product that originated from the acquisition of chip startup Nuvia last year. One of the largest purchasers of server chips, Amazon.com Inc.’s AWS division, has agreed to investigate Qualcomm’s products, they claimed.
Both Qualcomm and Amazon representatives declined to comment.
After Bloomberg broke the story, Qualcomm increased as much as 2.9% to $152.91 in New York trading. Through Wednesday, the shares had fallen 19% this year, contributing to a larger decline in semiconductor stocks.
In an effort to make Qualcomm more than just the leading manufacturer of smartphone processors, Chief Executive Officer Cristiano Amon is working to diversify the company’s semiconductor offerings. But under his predecessor, a previous foray into the server industry was shelved four years ago. At the time, the business was attempting to reduce expenses while appeasing investors in order to avoid being hostilely acquired by Broadcom Inc.
