With a new processor, Qualcomm plans to enter the server market again

According to sources familiar with its plans, Qualcomm Inc. is thinking of entering the server market with a new chip in an effort to lessen its dependency on smartphones, Bloomberg News reported on Thursday.

Nearly 3% of Qualcomm's shares increased during afternoon trading.

According to the article, the chipmaker is looking for clients for a product resulting from its acquisition of Nuvia Inc. It also stated that Amazon.com Inc.'s cloud business, Amazon Web Services (AWS), has agreed to examine Qualcomm's products.

With intentions to incorporate the company's technology into its smartphone, laptop, and car processors, the chipmaker purchased Nuvia last year, a chip startup created by former employees of Apple Inc.

In contrast, Qualcomm said it does not comment on speculations and pointed Reuters to its press statement from when it finalised the Nuvia transaction in March of last year. Amazon said that it had agreed to look into the proposition.

the San Diego area In July, Qualcomm issued a fourth-quarter revenue projection that fell short of Wall Street expectations as it prepared for a challenging economic climate and a downturn in smartphone demand that might harm its primary mobile chip business.