New York, Feb 25, 2026, 06:52 (EST) — Premarket
- AMD tacked on roughly 0.8% in premarket action, building on a strong surge from the previous session.
- Meta’s agreement hooks a performance warrant to both AMD’s chip delivery milestones and certain share-price targets for the stock.
- Chip investors eye Nvidia’s numbers coming out later Wednesday, hunting for fresh signals on AI demand.
Shares of Advanced Micro Devices ticked up roughly 0.8% in U.S. premarket action Wednesday, trading near $215.50 after finishing the prior session at $213.84. (Yahoo Finance)
AMD’s latest bid comes on the heels of its deal with Meta Platforms to expand AI infrastructure—a space where price swings have mattered more than earnings multiples these days. Large buyers are locking down supply and pressing vendors on delivery commitments.
Here’s the kicker: there’s an equity sweetener. This structure pulls together extended hardware delivery timelines and a payoff that looks a lot like a stake for the customer—a combination that puts regular shareholders in the position of crunching numbers before sunrise.
AMD and Meta on Tuesday announced a multi-year deal that will see Meta rolling out up to 6 gigawatts of AMD Instinct GPUs. The first gigawatt is scheduled to ship in the back half of 2026, using a custom MI450-based GPU alongside EPYC “Venice” server CPUs, all built on AMD’s Helios rack-scale system. “This is an important step for Meta as we diversify our compute,” said Meta CEO Mark Zuckerberg. For AMD, the agreement “places AMD at the center of the global AI buildout,” CEO Lisa Su noted. CFO Jean Hu expects the pact to be “accretive” to non-GAAP earnings per share, a metric that leaves out certain costs. (Advanced Micro Devices, Inc.)
According to an AMD filing, Meta snagged a performance-based warrant covering as many as 160 million shares, all priced at just $0.01 per share. Vesting isn’t all at once: tranches unlock as Meta hits certain purchase and shipment targets—starting when they reach the first 1 gigawatt equivalent. Another wrinkle: each tranche is tied to AMD stock hitting specific price thresholds, with the bar set as high as $600 for the last chunk. The warrant remains valid through Feb. 23, 2031. Exercising it would give Meta the right to buy shares at that set price, potentially diluting existing shareholders. (Advanced Micro Devices, Inc.)
Reuters puts the deal’s value at up to $60 billion over five years, with Meta securing rights to buy as much as 10% of AMD. Matt Britzman at Hargreaves Lansdown sees Meta “locking in supply” and moving away from sole sourcing, but points out AMD still has to show it can deliver at scale. AJ Bell’s Dan Coatsworth highlights “the return of circular transactions” as a fresh investor concern. For DA Davidson’s Gil Luria, the agreement marks “significant validation” for AMD’s GPU tech, and he sees Broadcom as the supplier most exposed. (Reuters)
AMD jumped 8.77% Tuesday, closing the session at $213.84. Shares moved in a $206.50 to $216.71 range. Roughly 81 million shares traded hands, session data show. (StockAnalysis)
Plenty could still unravel here. Maybe hardware-linked shipments get delayed. “Gigawatt-equivalent” may just mean another round of renegotiations down the road, and if these warrants become the price of entry for anything AI, investors might decide they’ve had enough.
All eyes move to Nvidia, which reports its fourth-quarter numbers and hosts its conference call after the bell on Wednesday, Feb. 25. The update lands as customers across the sector weigh outlay decisions and consider second-source options. (nvidianews.nvidia.com)
