AMD stock surged following the announcement of an expanded strategic partnership with Meta Platforms. AMD and Meta agreed to a multi-year, multi-generation deployment agreement for up to 6 gigawatts of AMD Instinct GPUs. The first gigawatt deployment is scheduled to begin in the second half of 2026, utilizing a custom AMD Instinct GPU based on the MI450 architecture optimized for Meta's workloads. The agreement also includes AMD's 6th Gen EPYC CPUs and the AMD Helios rack-scale architecture. As part of the deal, AMD issued Meta a performance warrant for up to 160 million shares with vesting tied to shipment tranches and stock price hurdles. AMD expects the Meta deployment to generate significant double-digit billions of data center AI revenue per gigawatt beginning in the second half of 2026.
Read full analysisAMD stock surged following the announcement of an expanded strategic partnership with Meta Platforms. AMD and Meta agreed to a multi-year, multi-generation deployment agreement for up to 6 gigawatts of AMD Instinct GPUs. The first gigawatt deployment is scheduled to begin in the second half of 2026, utilizing a custom AMD Instinct GPU based on the MI450 architecture optimized for Meta's workloads. The agreement also includes AMD's 6th Gen EPYC CPUs and the AMD Helios rack-scale architecture. As part of the deal, AMD issued Meta a performance warrant for up to 160 million shares with vesting tied to shipment tranches and stock price hurdles. AMD expects the Meta deployment to generate significant double-digit billions of data center AI revenue per gigawatt beginning in the second half of 2026.
AMD is the second-largest maker of CPUs and GPUs, competing with Intel in traditional computing and Nvidia in AI accelerators. The company reported record Q4 2025 revenue of $10.3 billion and recently surpassed 40% x86 server CPU market share. Today's 6-gigawatt Meta deal — covering custom MI450 GPUs, EPYC CPUs, and Helios rack-scale systems — directly counters the competitive displacement fears that had driven the stock down 9% over the prior week following Nvidia's own Meta partnership announcement.