SAN FRANCISCO, March 10, 2026, 06:40 PDT
Advanced Micro Devices has settled two patent suits brought by Adeia and agreed to a multi-year license for the technology firm’s semiconductor intellectual property portfolio, ending a fight over manufacturing methods used in some AMD chips. The companies did not disclose financial terms. Reuters
The timing matters. AMD is trying to turn recent AI orders into steadier growth after a softer first-quarter forecast in February renewed doubts about how fast it can narrow the gap with Nvidia. When AMD unveiled its Meta deal last month, Hargreaves Lansdown analyst Matt Britzman said Meta was “locking in supply” and “diversifying away from a single vendor.” Reuters
Adeia’s November suits accused AMD of infringing 10 patents tied to hybrid bonding and chips using AMD’s “3D V-Cache” design. Hybrid bonding stacks chip parts with direct copper-to-copper links, while 3D V-Cache adds memory vertically to a processor to speed up some workloads. Reuters
Adeia said the agreement resolves the litigation and could create room for future work. “Resolving our disputes allows both companies to move forward and creates an opportunity for exploring future collaborations on advanced semiconductor technologies,” Chief Executive Paul Davis said. AMD had denied the allegations in January court filings and did not immediately comment on the settlement. Reuters
The cases were filed in the U.S. District Court for the Western District of Texas, and Adeia said it asked the Midland court to dismiss them. For AMD, that closes a dispute tied to packaging technology used across PC, server and AI products. Reuters
Competition, though, is getting tighter. Nvidia Chief Executive Jensen Huang told analysts, “We love CPUs as well as GPUs,” the graphics processors that handle much of AI training, and Creative Strategies analyst Ben Bajarin said more autonomous AI software is pushing more computing back toward CPUs, the general-purpose chips AMD has long fought over with Intel in data centers. Reuters
AMD shares were last indicated up more than 5% in U.S. market data on Tuesday, while Nvidia gained about 3% and Intel rose about 5%. Broader tech and chip stocks were also firmer as investors watched for signs that AI spending was holding up. Reuters
But the license does not solve AMD’s bigger business risks. The company forecast about $9.8 billion in first-quarter revenue in February, down from the prior quarter, and TECHnalysis Research’s Bob O’Donnell said investors had come to expect “large blowout quarters” from AI hardware makers. Another uncertainty sits in Washington, where officials are weighing a new framework for large AI-chip exports that could require foreign buyers to invest in U.S. data centers or offer security guarantees. Reuters
After fourth-quarter results, CEO Lisa Su said AMD was entering 2026 with “strong momentum” in EPYC and Ryzen CPUs and a rapidly scaling AI business. The next big rollout comes later this year, when Meta’s first one-gigawatt deployment of AMD’s forthcoming MI450 hardware is due to start. Advanced Micro Devices, Inc.
