New York, Feb 26, 2026, 10:32 EST — Regular session
- AMD shares slipped, with investors digesting new partnership developments following a sharp rally earlier in the week.
- AMD plans to invest $150 million in Nutanix, and is also putting up to $100 million toward joint initiatives with the company.
- After Nvidia handed in its results and guidance, traders are parsing the latest signals on AI-chip demand.
Advanced Micro Devices slipped 2.6% to $205.31 in late morning action, coming off Wednesday’s close of $210.86. (Yahoo Finance)
AMD’s stock is back to its volatile ways as the chipmaker works to secure extended commitments for its data-center processors, just as investors debate the staying power of Big Tech’s current spending surge.
AMD announced late Wednesday it’s teaming up with Nutanix on a multi-year agreement to deliver an “open, full-stack” AI platform for enterprise customers. The chipmaker is putting $150 million into Nutanix stock, and could spend up to another $100 million on joint engineering and go-to-market initiatives. “Enterprise customers need the freedom to run the models and workloads that matter most to their business, without compromise,” said Dan McNamara, a senior vice president at AMD. (Advanced Micro Devices, Inc.)
Nutanix put out its news just after AMD revealed a five-year pact with Meta Platforms on Tuesday, giving the Facebook parent the option to snap up as much as $60 billion in AI chips—and take up to a 10% stake in AMD. “Meta is locking in supply, diversifying away from a single vendor, and doing whatever it takes to make sure its AI ambitions aren’t bottlenecked by chips,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. (Reuters)
A filing revealed AMD granted Meta a performance-based warrant, letting Meta potentially snap up as many as 160 million shares at just $0.01 apiece. Vesting happens in tranches, each linked to specific purchase levels and escalating stock price targets—up to $600 per share for the last tranche—plus several technical and commercial requirements. (Advanced Micro Devices, Inc.)
Investors usually eye warrants and other equity sweeteners as dilution threats—mechanics count, even with trigger points set far beyond where shares are trading now.
AMD is touting its latest GPU lineup as built for “inference”—that’s the part where AI models spit out answers, not where they get trained. The company is also making noise about “agentic AI,” a catchphrase for software that manages planning and actions across different tools. That term is making the rounds in enterprise tech circles right now.
Chip stocks kept tracking Nvidia after the company delivered a quarterly beat and projected revenue for the current quarter that topped forecasts. Nvidia put its fiscal first-quarter sales outlook at $78 billion, give or take 2%, while analysts were at $72.60 billion on average, LSEG data shows. (Reuters)
AMD’s story to investors comes down to this: bigger customers, locked-in orders, plus ramped-up software backing its chips. What Wall Street is waiting on is whether those commitments start filling out the top line—and how quickly.
Still, plenty could slip. The deals run for years, hinging on precise supply chains and customers’ spending intentions. If competitors undercut prices or buyers ramp up in-house chip efforts, pricing battles aren’t far behind.
Friday brings the January U.S. Producer Price Index at 8:30 a.m. ET, a key release for traders looking for hints on rates and risk sentiment. Eyes are also on any updates about the Meta warrant milestones and when the Nutanix investment might close, still aimed for the second quarter. (bls.gov)
