New York, Feb 26, 2026, 10:04 EST — Regular session
- AMD shares dipped roughly 2.3% early, following two volatile sessions linked to fresh AI partnerships.
- The Meta supply deal and the stock-based warrant are in the spotlight, as is a new Nutanix partnership.
- Investors want more clarity on ramp and margins when AMD presents at the conference March 3.
Advanced Micro Devices shares dropped 2.3% to $206.00 early Thursday, giving back some of this week’s gains as investors reacted to fresh news about AI supply agreements.
The retreat is notable: AMD’s recent deals lean on atypical arrangements, like tying up chip supply over the long haul and layering in equity-based incentives. Right now, investors are watching dilution risk and questioning if AI outlays start to deliver returns quickly enough.
AMD struck a deal Tuesday to provide Meta Platforms with as much as $60 billion in artificial intelligence chips over the next five years. The agreement includes an option for Meta to acquire up to 10% of AMD. “Meta is locking in supply, diversifying away from a single vendor,” noted Matt Britzman, senior equity analyst at Hargreaves Lansdown. Reuters
According to a Feb. 24 SEC filing, Meta’s deal with AMD features a performance-based warrant, letting Meta snap up as many as 160 million AMD shares for just $0.01 apiece. Meta unlocks pieces of the warrant as it hits certain purchase targets, AMD matches those with shipments, and AMD’s stock surpasses set price hurdles. These warrants, if exercised, would allow Meta to buy stock later—diluting current shareholders.
AMD expects Meta to start deploying the first gigawatt in the back half of 2026, relying on a custom Instinct GPU built around AMD’s MI450 design. “An important step for Meta as we diversify our compute,” Meta CEO Mark Zuckerberg said. AMD CEO Lisa Su pointed to both firms driving “AI at unprecedented scale.” AMD
Just a day after the initial announcement, AMD and Nutanix unveiled plans to team up on an open, full-stack AI infrastructure platform targeting so-called “agentic AI”—technology designed for software that acts and plans, not just responds. AMD is committing $150 million to Nutanix stock at $36.26 a share, plus potentially another $100 million for joint engineering and go-to-market efforts. An AMD executive put it this way: customers want the “freedom to run the models and workloads that matter.” AMD
AMD stock has swung sharply following the Meta announcement. Shares finished Feb. 24 up 8.77%, but lost 1.39% a day later. Thursday’s session saw the opening print at $208.74, then a dip down to $204.29, Investing.com data shows.
Chipmakers have been tracking Nvidia, which posted quarterly results late Wednesday. The AI giant reported $68.13 billion in revenue, up 73% year-over-year, with CEO Jensen Huang telling Investopedia that customers are “racing to invest in AI.” Investopedia
Still, there’s a catch in how AMD’s Meta deal is set up. Those share-linked incentives only pay off if shipments and purchases actually scale as expected—and if AMD keeps nailing its performance targets. Miss the mark on product timing or data-center appetite? Dilution jitters and valuation concerns could snap right back, especially with Nvidia continuing to dominate in AI chips.
AMD heads to the Morgan Stanley Technology, Media & Telecom Conference on March 3, setting up a close-in marker for updates around pricing, margins, and execution schedules.
