New York, Feb 24, 2026, 10:24 (ET) — Regular session
- Meta Platforms slipped 2.8% to $637.25 during morning trade.
- AMD plans to deliver as much as $60 billion in AI chips across five years, with Meta securing an option linked to AMD equity.
- All eyes now turn to Nvidia, with its Feb. 25 results set to give the next real pulse on AI appetite and how much Big Tech is willing to spend.
Shares of Meta Platforms, Inc. (META.O) dropped 2.8% to $637.25 on Tuesday, as investors digested the company’s latest move—a push spanning years—to secure enough artificial intelligence chips.
Advanced Micro Devices has agreed to supply Meta with as much as $60 billion in AI chips across five years, and the deal hands the Facebook parent an option to snap up as much as a 10% stake in AMD. “Meta’s locking in supply, diversifying away from a single vendor,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. (Reuters)
Timing is crucial here. Markets are jumpy over the duration of the AI investment cycle and the speed at which it pays off—these days, future spending plans are moving stocks more than quarterly results. Alphabet, Microsoft, Amazon, and Meta together are set to pour at least $630 billion into capital spending this year. Nvidia’s earnings, due Wednesday, loom as the next major test for this trade. (Reuters)
AMD is set to deliver six gigawatts worth of chips to Meta, beginning with its MI450 platform in the latter half of 2026. Meta will also pick up customized CPUs from AMD, according to the company. The MI450 targets inference workloads—essentially, running AI models to spit out results. Meta’s infrastructure chief, Santosh Janardhan, said “all of the chip makers” will “end up with a seat at the table” as Meta ramps up its data centers. (Reuters)
AMD said in a statement that Meta is set to become a lead customer for the company’s next-generation EPYC server chips. The performance-based warrant—covering as many as 160 million AMD shares—will vest depending on shipment volumes and other milestone targets. Over several generations, Meta has installed millions of EPYC CPUs throughout its infrastructure, according to AMD. (AMD)
The broader AI sector showed a mixed picture. AMD dropped around 1.7% after an early jump at the open, Nvidia managed to climb about 0.9%, while Broadcom eased 0.7% lower.
Meta’s agreement looks like a hedge against potential chip shortages. Still, it draws attention to spending levels and recovery timelines. Should AI demand lose steam or hardware rollout drag on, investors might begin to wonder whether the company is ramping up capacity faster than necessary.
Legal risks continue to dog Meta. Newly unsealed filings from a New Mexico lawsuit revealed internal concerns: switching to default encryption on some messaging apps could hamper Meta’s ability to report child-exploitation cases to authorities, the documents showed on Friday. The company responded that it had designed new safety tools for encrypted chats ahead of launching encrypted messaging for Facebook and Instagram in 2023. (Reuters)
Next up: Nvidia’s fiscal Q4 numbers, landing after the bell on Feb. 25, with execs set to speak at 2 p.m. PT (5 p.m. ET). Watch for any sign of changing demand, particularly for inference chips—that’s what could jolt both suppliers and top buyers like Meta. (investor.nvidia.com)
