New York, Feb 24, 2026, 12:33 (ET) — Regular session
- AMD shares jumped to the top of the Nasdaq 100 after news broke of the Meta data-center chip agreement.
- Meta holds a warrant to purchase as many as 160 million AMD shares at $0.01 each, according to the filing, though it’s subject to performance hurdles.
- Next up: Nvidia reports on Feb. 25, with investors watching closely for signals on AI chip appetite.
Shares of Advanced Micro Devices (AMD.O) jumped over 6% by midday Tuesday, topping the Nasdaq 100 after Meta Platforms (META.O) announced plans to use AMD processor-powered data-center equipment. (Nasdaq)
This shift lands right as the AI trade faces scrutiny. Investors remain hungry for growth, yet they’re pressing for details—on returns, pricing strength, and ultimately who’s left to absorb the soaring costs of capacity.
Meta wants to avoid chips turning into a choke point. AMD, on the other hand, gets an opportunity here to secure a major client and chip away at Nvidia’s lead in premium AI processors, a segment Nvidia continues to control.
AMD has struck a deal to supply up to $60 billion in AI chips to Meta across five years, letting the Facebook parent buy as much as 10% of the chipmaker. Under the agreement, Meta secures six gigawatts’ worth of chips, starting with a gigawatt of MI450 hardware in the back half of 2026—enough, according to CEO Lisa Su, to power around 750,000 homes. “Meta is locking in supply,” observed Matt Britzman of Hargreaves Lansdown. Over at AJ Bell, Dan Coatsworth noted the deal’s structure “gives investors something else to worry about.” (Reuters)
According to a regulatory filing, AMD granted Meta a performance-based warrant giving the social media giant the right to snap up as many as 160 million AMD shares at just $0.01 each. The catch: vesting is linked to Meta actually purchasing and receiving between one and six gigawatts of chip capacity, plus certain AMD stock-price milestones that ratchet up to $600. Meta can exercise the warrant any time up until Feb. 23, 2031. (Advanced Micro Devices, Inc.)
AMD and Meta plan to start shipping hardware for the initial gigawatt-scale rollout in the back half of 2026. The setup will feature a custom GPU built off Instinct MI450, along with AMD’s sixth-gen EPYC “Venice” CPUs, all running ROCm software inside Meta’s Helios rack-scale system. The focus here is “inference,” that critical stage where AI models generate answers from prompts, and Meta’s specific workloads shaped the GPU design. “We are proud to expand our strategic partnership with Meta,” AMD CEO Lisa Su said. Meta’s Mark Zuckerberg called the deal “an important step for Meta as we diversify our compute.” (AMD)
Meta describes the AMD partnership as part of a “portfolio-based approach,” mixing gear from different suppliers with its in-house Meta Training and Inference Accelerator (MTIA) project. The goal: keep the AI stack adaptable to a range of workloads as the company ramps up. (About Facebook)
The news broke as U.S. indexes inched up, with traders still watching tariff headlines. President Donald Trump’s 10% global tariff went into effect Tuesday; he added that the rate would jump to 15%, but didn’t specify when. “The market doesn’t only have one particular worry,” said Peter Cardillo, chief market economist at Spartan Capital Securities. (Reuters)
The timetable stacks the bulk of volume into late 2026 and after, leaving investors guessing at the deal’s margin dynamics. Margins remain opaque. Any slip in deliveries—or a pullback in AI spending if budgets come under pressure—could dull the headline appeal.
The focus shifts to the upcoming slate of AI heavyweights, beginning with Nvidia’s fiscal Q4 report and webcast scheduled for Wednesday, Feb. 25. If Nvidia signals changes, whether in chip supply or inference demand, that could quickly reprice AMD as well. ([investor.nvidia.com][7])
[7]: https://investor.nvidia.com/events-and-presentations/events-and-presentations/event-details/2026/NVIDIA-4th-Quarter-FY26-Financial-Results-2026-sO6kGS3C2P/default.aspx “
NVIDIA Corporation – NVIDIA 4th Quarter FY26 Financial Results
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