New York, Feb 24, 2026, 12:58 EST — Regular session
- AMD shares climbed after Meta committed to using as much as 6 gigawatts of AMD AI chips, with warrants linked to shipment milestones.
- Big Tech is racing to secure AI chip supplies, a scramble underscored by the deal as investors keep a close eye on returns from massive outlays.
- Nvidia’s earnings, set for release Wednesday, stand out as the next catalyst for the AI trade.
Shares of Advanced Micro Devices jumped over 6% Tuesday after the company announced Meta Platforms plans to use as much as 6 gigawatts of AMD Instinct GPUs to build out its AI infrastructure. Meta picked up warrants linked to certain delivery targets—potentially opening the door to a significant equity position.
Traders zeroed in on the deal’s structure. AMD lined up an agreement to supply Meta with as much as $60 billion worth of AI chips over five years. The Facebook parent also secured an option to buy up to 10% of AMD. “Meta is locking in supply, diversifying away from a single vendor,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. He added that the equity component signals just how aggressively chipmakers are competing for orders. Reuters
Timing’s a factor here. Nvidia drops earnings Wednesday, and the Street wants signs that profit growth isn’t stalling as tech giants ramp up their spend. “People are so concerned about AI spending — whether we’re in a bubble,” said Ivana Delevska, chief investment officer at Spear Invest. Seaport Research Partners’ Jay Goldberg, meanwhile, points to limited TSMC capacity as something that could cap the upside. Reuters
AMD plans to begin shipping components for Meta’s initial one-gigawatt rollout in the second half of 2026, using a custom Instinct GPU built on the MI450 architecture plus its Helios rack-scale setup. “One of the industry’s largest AI deployments,” CEO Lisa Su said. Mark Zuckerberg, Meta’s chief, described the effort as targeting “efficient inference compute”—referring to the process where AI models deliver answers on the fly. AMD
According to a filing, AMD handed Meta a performance-based warrant—effectively an option—to snap up as many as 160 million shares at just $0.01 apiece. The catch: Meta has to ramp up its Instinct GPU orders from one gigawatt to six gigawatts, with each tranche unlocking as those purchases hit targets. AMD’s stock also needs to reach price thresholds, topping out at $600 for the last portion. The warrant stays valid through Feb. 23, 2031, and Meta can exercise it either by paying cash or through a cashless method, the filing showed.
Meta described the deal as a “portfolio-based” approach, combining both its own silicon and partner hardware, as workloads increasingly diverge between AI training and inference. The company’s goal: a stack that’s more adaptable, and tighter coordination with suppliers on hardware and software timelines. About Facebook
Meta’s move centers on power—both the wattage and the money. According to the Financial Times, the new chips target inference jobs, and Meta is ready to crank up its AI infrastructure budget this year, nearly doubling it to a possible $135 billion. The company wants out from under reliance on just one supplier.
For some investors, the AMD deal looked like a much-needed spark. According to Investopedia, AMD shares were down roughly 8% in 2026 before Tuesday’s surge, with traders doubting the company’s ability to close the distance with Nvidia on data-center AI chips.
Meta’s deal spotlights AMD’s MI450 chips, AP said, just days after Meta rolled out a long-term AI data center tie-up with Nvidia. The recurring debate hasn’t faded: how quickly does the spending climb, and at what point does it start generating real cash?
But there’s a flip side to the structure. The warrant pays out only if AMD clears delivery and market milestones. That equity kicker? It highlights the catch: shareholders take on dilution risk, and execution risk looms large if hardware timelines slip or capital allocation shifts.
Nvidia’s earnings land Wednesday, and investors are bracing for a read on demand, margins, and guidance that could set the tone for the sector. For AMD, the focus is squarely on MI450 shipping timelines. There’s also the question of whether more Big Tech names will line up for warrant-backed supply agreements.
