NEW YORK, Feb 24, 2026, 17:00 EST — After-hours
- AMD shares surged 8.8% after Meta struck a multi-year agreement to buy AI chips from the company. The deal features a warrant linked to specific delivery milestones.
- Up to 6 gigawatts of computing power are on the table in the deal, with the initial shipments set for the back half of 2026.
- Nvidia’s numbers coming up Wednesday are in focus as investors search for the next signal on AI demand.
Shares of Advanced Micro Devices soared Tuesday, after the chipmaker clinched a broad supply deal with Meta Platforms. The agreement could see the Facebook parent take as much as a 10% stake in AMD.
The agreement underscores how major tech giants continue scrambling for limited AI hardware, despite investors questioning the longevity and payoff speed of the current spending surge.
U.S. equities found some footing following a tough session, with the Nasdaq and S&P 500 closing in the green. Investors rotated back into big tech names. https://www.investopedia.com/stock-market-today-dow-jones-s-and-p-500-02242026-11912762
AMD surged 8.77% to finish at $213.84, after touching $216.71 intraday. Meta closed at $636.64, almost flat for the day. https://finance.yahoo.com/quote/AMD/history/ https://finance.yahoo.com/quote/META/history/
AMD and Meta have struck a deal that will see up to 6 gigawatts of AMD Instinct GPUs supplied, with initial shipments slated for the back half of 2026. The rollout hinges on a custom GPU built around AMD’s MI450. Meta CEO Mark Zuckerberg described the move as “an important step for Meta as we diversify our compute,” and AMD CFO Jean Hu is looking for “substantial multi-year revenue growth” from the tie-up. https://ir.amd.com/news-events/press-releases/detail/1279/amd-and-meta-announce-expanded-strategic-partnership-to-deploy-6-gigawatts-of-amd-gpus
This deal stands out from typical AI hardware agreements. According to a regulatory filing, AMD handed Meta a performance-based warrant. That lets Meta buy up to 160 million AMD shares for just $0.01 each, depending on certain milestones. Vesting kicks in as shipment and purchase goals are met at each step, all the way up to the 6-gigawatt target. There’s also a stock price component: Meta can only unlock the last chunk if AMD shares hit $600. https://ir.amd.com/financial-information/sec-filings/content/0000002488-26-000045/amd-20260223.htm
Reuters put the deal at as much as $60 billion worth of AI chips spread over five years, pointing to a surge in cross-investments and warrants as companies in the space tighten their ties. “Meta is locking in supply, diversifying away from a single vendor,” Matt Britzman, senior equity analyst at Hargreaves Lansdown, told Reuters. https://www.reuters.com/business/amd-clinches-second-mega-chip-supply-deal-this-time-with-meta-2026-02-24/
The agreement drops right in the thick of a volatile stretch for AI stocks. Nvidia, which dominates the AI chip sector, is set to announce earnings Wednesday, and traders have been piling into bets that those numbers will back up both demand and pricing all the way down the chip supply chain.
AMD lands the kind of win rivals covet: Meta on board as a marquee customer, locked in for years, with a clear message to the market that Meta doesn’t want to rely on just one chipmaker. Now comes the tough part—actually getting MI450-based systems shipped on schedule, and doing it profitably enough to warrant the scale.
Shareholders face some risks here. If Meta earns and exercises the warrant, dilution is possible. The deal’s milestone and stock price hurdles? Those could sting if deliveries stumble, targets aren’t hit, or AI infrastructure budgets pull back.
Nvidia’s earnings, set for Feb. 25, are up next—investors want hints about demand across the sector. Then it’s AMD and Meta, where eyes are on pricing, shipment timing and how “gigawatt-scale” deployments might play out in revenue recognition through the coming quarters.
