Qualcomm plans to return to the server market with a new chip

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(Reuters) – Qualcomm Inc plans to return to the server market with a new chip in a bid to reduce its reliance on smartphones, Bloomberg News reported on Thursday, citing people familiar with its plan.

Qualcomm shares rose nearly 3% in afternoon trading.

The chipmaker is seeking customers for a product from its purchase of Nuvia Inc, the report says, adding that Amazon.com Inc’s cloud division, Amazon Web Services (AWS), has agreed to consider offers from Qualcomm .

Last year, the chipmaker acquired Nuvia, a chip startup founded by veterans of Apple Inc, with the intention of integrating the company’s technology into its processors for smartphones, laptops and automobiles.

Amazon confirmed it had agreed to consider the offer, while Qualcomm said it was not commenting on the rumors and directed Reuters to its press release when it closed the Nuvia deal in March. ‘last year.

San Diego-based Qualcomm forecast fourth-quarter revenue in July below Wall Street targets, bracing for a tough economy and slowing demand for smartphones that could hurt its core handset chip business.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Maju Samuel)

Copyright 2022 Thomson Reuters.

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