New York, February 25, 2026, 04:56 (ET) — Premarket
- AMD edged higher in premarket trading, following its 8.8% surge from the previous session.
- The Meta agreement features a performance-based warrant, contingent on both shipment milestones and specific stock-price targets.
- Nvidia steps into the spotlight later Wednesday, with chip investors watching closely for signals on demand.
Advanced Micro Devices, Inc. shares edged up in premarket trading Wednesday, after the chipmaker disclosed a multi-year artificial intelligence chip supply agreement with Meta Platforms. The arrangement could end up giving the Facebook parent a significant equity stake.
The deal drops as AI hardware stocks twitch, investors pushing hard for proof that data-center chip demand can actually stretch beyond just a single dominant player.
Nvidia is set to report results in just a few hours—a regular catalyst that tends to swing the entire sector and can swiftly shift how investors look at spending around AI servers and accelerators.
AMD edged 0.4% higher to $214.78 in premarket moves, following a sharp 8.77% jump Tuesday that left shares finishing at $213.84. The prior session saw AMD swing between $206.50 and $216.71, with volume near 81 million shares. (Investing.com)
AMD on Tuesday announced a deal to supply Meta with up to $60 billion worth of AI chips over five years, handing Meta the right to snap up as much as a 10% stake in AMD. “Locking in supply, diversifying away from a single vendor,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown—echoing Big Tech’s scramble for hard-to-get processors. (Reuters)
AMD’s first rollout features a custom Instinct GPU built on the MI450 architecture, paired with its sixth-generation EPYC “Venice” server CPUs and ROCm software, all part of the company’s Helios rack-scale system. CEO Lisa Su pointed to Meta’s plans to “push the boundaries of AI at unprecedented scale.” Mark Zuckerberg, Meta’s CEO, said the collaboration allows Meta to “diversify our compute.” CFO Jean Hu told reporters the deal is set to “drive substantial multi-year revenue growth.” (AMD)
According to a securities filing, Meta holds a warrant allowing it to buy as many as 160 million AMD shares at just $0.01 apiece. The vesting? It depends on hitting certain shipment milestones—specifically, up to six gigawatts of Instinct GPU purchases—as well as AMD’s stock hitting price targets that reach $600 for the last tranche. Meta can exercise the option through Feb. 23, 2031, and also secured registration rights for these shares, the filing noted. (Advanced Micro Devices, Inc.)
Meta’s angle here is inference—the point when an AI model spits out user responses—a process that quickly shines a spotlight on cost and energy efficiency as usage climbs. AMD, for its part, is pushing the idea that the hardware isn’t everything: custom systems and software count, too, and buyers get on board early if they trust the roadmap.
Even so, the setup isn’t one-sided. The warrant acts like a bargain share—assuming milestones come through. But there’s plenty for investors to scrutinize: dilution, tangled performance hurdles, and the reliability of those delivery timelines, especially as the AI scramble grows more chaotic.
Nvidia’s report lands later Wednesday, a key gauge for traders sizing up AI chip demand and pricing dynamics. Details on Meta’s buying pace, along with how swiftly AMD can deliver MI450-based systems, look set to dictate AMD’s trajectory from here.
