Advanced Micro Devices just scored another big AI chip deal, this time with Meta Platforms.
Meta announced a massive deal with AMD on Tuesday, which would see the social media giant agree to purchase six gigawatts of processors for AI from the semiconductor manufacturer and possibly acquire stock worth up to 10% of the company—very similar to a deal AMD struck with OpenAI last October.
Stock futures are slightly higher this morning after major market indexes plunged yesterday amid tariff uncertainty and concerns related to artificial intelligence; the Trump administration is considering enacting national security tariffs on a handful of industries in response to last week's Supreme Court ruling striking down import levies; AMD shares are soaring after the chip giant struck an AI deal with Meta Platforms; Shares of Home Depot are rising after the retailer posted quarterly results that beat analysts' estimates; and President Donald Trump is expected to focus on the economy and affordability in tonight's State of the Union address. Here's what you need to know today.
The multi-year, multi-generation deal hands AMD its most significant validation yet in the race to challenge Nvidia's dominance of the AI infrastructure market Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) investors have been waiting for a deal of this magnitude. Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) agreement to deploy up to 6 gigawatts of AMD Instinct GPUs across multiple generations of hardware sent the chipmaker's shares up 10% before the opening bell on Tuesday, a move that reflects how consequential the partnership is for AMD's standing in the AI infrastructure race.
As Meta looks to diversify beyond Nvidia, it's making a big bet on AMD chips and obtaining a chance to invest in the company.
Meta has agreed to buy 6 gigawatts' worth of AMD's AI chips. It comes after Meta recently agreed to a separate chip deal with Nvidia.
Advanced Micro Devices said on Tuesday it has agreed to sell up to $60 billion worth of artificial intelligence chips to Meta Platforms over five years in a deal that allows the Facebook owner to purchase as much as 10% of the chip firm.
The deal could result in Meta owning as much as 10% of AMD's stock as the chipmaker seeks to challenge Nvidia.
Advanced Micro Devices dropped -20% over the last month. You might feel inclined to purchase more, or you may wish to decrease your investment exposure.
The India AI Impact Summit is a major tech event in the country and drew a host of prominent tech and world leaders to New Delhi. U.S. tech companies made moves to deepen ties with India's tech ecosystem.
Advanced Micro Devices is shifting from standalone accelerators to rack-scale MI450 and Helios systems, increasing value capture per AI deployment. Fifth-generation EPYC drove over half of server revenue in Q4, positioning CPUs as an AI demand multiplier. Consensus projects revenue growth from $46.4B in 2026 to $64.4B in 2027, implying 39% expansion.
Recently, Zacks.com users have been paying close attention to Advanced Micro (AMD). This makes it worthwhile to examine what the stock has in store.