Qualcomm has agreed to purchase additional chips from GlobalFoundries. The total value of the contract will reach $7.4 billion. Qualcomm will have to fulfill its obligations until 2028. The purchased chips will be used for 5G, WI-FI and automotive internet modules.
Despite the good deal, Qualcomm stock is down 2%. The semiconductor sector is down today due to a disappointing preliminary report from Nvidia. Strengthening the long-term contract is a positive for both QCOM and GFS.
