New York, Feb 24, 2026, 12:58 EST — Regular session
- AMD shares rose after Meta agreed to deploy up to 6 gigawatts of AMD AI processors, with warrants tied to deliveries.
- The deal spotlights Big Tech’s scramble to lock in AI chip supply as investors watch the payback from heavy spending.
- Nvidia’s results due Wednesday are the next near-term catalyst for the AI trade.
Advanced Micro Devices shares rose more than 6% on Tuesday after the chipmaker said Meta Platforms will deploy up to 6 gigawatts of AMD Instinct GPUs, or graphics processing units, for AI infrastructure. Meta received warrants tied to delivery milestones that could translate into a sizable equity stake. (Investors)
The structure is what traders latched onto. AMD said it agreed to sell up to $60 billion of AI chips to Meta over five years, and the Facebook owner has the option to buy as much as 10% of AMD. “Meta is locking in supply, diversifying away from a single vendor,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown, while warning the equity sweetener hinted at how hard chipmakers are pushing for orders. (Reuters)
The timing matters, too. Nvidia reports results on Wednesday, and investors are looking for evidence that profits keep rising even as Big Tech’s spending bill grows. “People are so concerned about AI spending — whether we’re in a bubble,” said Ivana Delevska, chief investment officer at Spear Invest, while Seaport Research Partners’ Jay Goldberg flagged tight TSMC capacity as a potential brake on upside surprises. (Reuters)
AMD said the first shipments supporting the initial one-gigawatt deployment are due to start in the second half of 2026, built around a custom Instinct GPU based on its MI450 architecture and its Helios rack-scale design. CEO Lisa Su called it “one of the industry’s largest AI deployments,” while Meta CEO Mark Zuckerberg said the goal was “efficient inference compute” — the part of AI where trained models produce answers in real time. (AMD)
A filing showed AMD issued Meta a performance-based warrant — essentially an option — to buy up to 160 million shares at $0.01 each. The shares vest in tranches as Meta scales purchases from an initial one gigawatt of Instinct GPUs to six gigawatts, with AMD share-price hurdles that climb to $600 for the final tranche. The warrant runs until Feb. 23, 2031 and can be exercised for cash or in a cashless form, the filing said. (SEC)
Meta pitched the arrangement as part of a “portfolio-based” buildout, mixing partner hardware with its own in-house chips as workloads split between training AI models and running them. The company said it wants a more flexible stack and closer alignment with suppliers on hardware and software roadmaps. (About Facebook)
For Meta, the bet is also about power — literally and financially. The Financial Times reported the chips are aimed mainly at inference tasks and said Meta planned to nearly double AI infrastructure spending this year, to as much as $135 billion, as it tries to avoid dependence on a single vendor. (Financial Times)
Some investors read the AMD win as a needed jolt. AMD’s shares had fallen about 8% so far in 2026 before Tuesday’s jump, Investopedia reported, as traders questioned how quickly the company could narrow the gap with Nvidia in data-center AI chips. (Investopedia)
AP reported Meta’s agreement centers on AMD’s MI450 chips and comes days after Meta announced a long-term Nvidia partnership for its AI data centers. The headlines have kept a familiar question on traders’ screens: how fast the spending rises, and when it turns into cash. (AP News)
But the structure cuts both ways. The warrant only pays off if AMD hits delivery and market milestones, and the equity kicker is a reminder that these orders can come with strings — dilution risk for shareholders, and plenty of execution risk if hardware schedules slip or spending plans change.
What comes next is Nvidia’s earnings report on Wednesday, which investors are likely to treat as a sector-wide check on demand, margins and guidance. For AMD, traders will be watching for updates on when MI450 systems start shipping — and whether other Big Tech buyers push for similar warrant-backed supply deals.
