Warrant-for-procurement deals

Plain English. A supplier grants a big customer warrants — rights to buy the supplier's shares at a set price — that vest as the customer hits purchase targets. The customer's buying makes the supplier's stock rise; the warrants hand the customer a share of that rise.

Why it moves money. The structure converts procurement into equity upside and customers into aligned shareholders. Two 2026 filings set the template: Qualcomm issued Amazon warrants over about US$4 billion of stock, vesting against up to US$60 billion of chip purchases; Google took rights to up to roughly US$12.2 billion of Marvell shares tied to purchase targets through fiscal 2033. Read revenue quality accordingly — a sale that vests equity in the buyer is partly paid for in the seller's own shares, and the dilution is the discount. Note the direction has reversed from the Nvidia pattern of investing in customers: here the customer extracts equity from the supplier.

What to watch. Warrant terms in SEC filings attached to supply announcements (strike, vesting triggers, expiry); how much of a supplier's booked backlog carries attached equity; whether the structure spreads to power and memory contracts.

From the signals. Qualcomm grants Amazon US$4bn in warrants tied to up to US$60bn of chips. Google takes a share-purchase right in Marvell tied to volumes to 2033.