NEW YORK, Feb 24, 2026, 10:18 ET — Trading during the regular session.
- AMD shares climbed roughly 7% after the Meta announcement, pulling back from an earlier jump that saw gains as high as 14%.
- Meta has lined up a deal that may stretch to five years, coming with a warrant covering as many as 160 million AMD shares.
- Nvidia’s results land Feb. 25. Traders are zeroed in, looking for the latest signal on AI chip demand.
Advanced Micro Devices (AMD.O) jumped roughly 7%, trading at $210.30 Tuesday, after Meta Platforms (META.O) locked in a multi-year AI chip deal that could open the door for the Facebook parent to acquire a significant equity stake. Wedbush’s Matt Bryson noted the update “addresses recent concerns” around AMD’s MI450 timeline “might be slipping.” (Investing.com)
AMD has struck a deal to supply Meta with as much as $60 billion in AI chips over five years, giving Meta the option to snap up as much as 10% of the chipmaker. Shares finished at $196.60 in the last session, then jumped over 10% before the bell. (Reuters)
According to a company filing, AMD granted Meta a performance-based warrant covering as many as 160 million shares at just $0.01 a piece. Vesting comes in tranches, each linked to shipment targets—up to six gigawatts—and AMD share price hurdles, which top out at $600 per share for the last tranche, the filing noted. The warrant remains active through Feb. 23, 2031. If exercised, the warrant—essentially an option issued by the company—could boost AMD’s share count. (Advanced Micro Devices, Inc.)
AMD and Meta are aiming to roll out as much as six gigawatts of AMD Instinct GPUs, with the first gigawatt’s worth of shipments set to start in the back half of 2026. The plan centers on a custom MI450-based chip, sixth-gen EPYC CPUs (codenamed “Venice”), all tied together by AMD’s Helios rack-scale system architecture and running on ROCm software. “We are proud to expand our strategic partnership with Meta,” AMD CEO Lisa Su said. Meta’s Mark Zuckerberg described the move as a way to “diversify our compute.” AMD CFO Jean Hu expects the deal to “drive substantial multi-year revenue growth” and be “accretive to our non-GAAP earnings per share,” a metric that excludes certain expenses. (AMD)
Some investors are weighing the trade-offs for higher volume. “Meta’s AI arms race just shifted up another gear,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. He noted Meta is “locking in supply” to dodge any risk of getting “bottlenecked by chips.” Dan Coatsworth, AJ Bell’s head of markets, called the equity-linked structure potentially “jarring” and flagged “circular transactions” as a fresh concern for shareholders. (Reuters)
The agreement ratchets up competition. Meta is busy securing supply from multiple vendors, while AMD is positioning as the go-to alternative in a landscape still dominated by Nvidia (NVDA.O).
Execution will be key here. First shipments aren’t due until the back half of 2026, and that warrant doesn’t vest unless certain volumes and criteria are hit. So, there’s still a fair amount of risk around delivery, meeting targets, or end-user demand.
It’s basic arithmetic, too: a sizable warrant risks weighing on the stock if dilution fears take hold—despite what it says about a customer’s appetite for scale.
Nvidia’s latest earnings arrive Wednesday, Feb. 25. Wall Street will be zeroing in on clues about where AI chip demand stands, how tight supply chains have gotten, and whether Nvidia can keep flexing its pricing muscle in the sector. (nasdaq.com)
