AMD Shares Soar After Meta Chip Deal Worth More Than $100 Billion

Shares of Advanced Micro Devices surged the most in five months in premarket trading, after Meta disclosed a multi-year deal to deploy up to 6 gigawatts of AMD Instinct GPUs to power its next-generation AI data centers.

Meta will begin deploying these AMD chips in the second half of 2026. The first phase will support the deployment of 1 gigawatt.

AMD stated:

This agreement expands on the companies’ existing strategic partnership and aligns roadmaps across silicon, systems, and software to deliver AI platforms purpose-built for Meta’s workloads. The first deployment will use a custom AMD Instinct GPU based on the MI450 architecture to deliver AI platforms that are optimized for Meta’s workloads at gigawatt-scale. Shipments supporting the first gigawatt deployment are scheduled to begin in the second half of 2026.

Part of the deal includes Meta receiving a performance-based warrant for up to 160 million shares of AMD stock, structured to vest based on specific milestones tied to chip shipments. The first tranche vests with the initial 1-gigawatt of shipments, with additional tranches vesting as Meta’s purchases scale to 6 gigawatts.

AMD shares in New York jumped as much as 15% in premarket trading. As of 7:30 a.m. ET, the stock was up about 12%. If those gains hold into the cash session, it would mark AMD’s largest intraday increase since early October. Meta’s stock was marginally higher in premarket, while Nvidia shares traded down nearly 1%.

“Our ambitions are pretty high,” said Santosh Janardhan, Meta’s head of global infrastructure, who oversees the company’s data centers and their technical architecture, as quoted by Bloomberg.

AMD Chief Executive Officer Lisa Su said, “What we’re looking to do is go big and accelerate,” adding, “We were on a very good path with Meta, but this actually takes our relationship to the next level.”

Meta is already AMD’s second-largest customer, and these chip shipments will only set to increase. AMD reported $34.6 billion in sales last year and revenue this year could jump by at least 34% as the AI data center infrastructure cycle gains momentum.

The Wall Street Journal reports that the Meta-AMD deal to buy 6 gigawatts of AMD Instinct GPUs is worth more than $100 billion, potentially giving Meta ownership of up to 10% of AMD’s stock.

In October, AMD signed a deal with OpenAI that had terms similar to those of the Meta deal. We view these deals as “circular financing,” something we have previously highlighted.

To note, Meta said last week that it would purchase millions of Nvidia’s GPUs as well.

“This is an important step for Meta as we diversify our compute,” Meta CEO Mark Zuckerberg wrote in a statement, adding, “I expect AMD to be an important partner for many years to come.”