NEW YORK, Feb 25, 2026, 10:14 EST — Regular session
- AMD slipped about 0.3% early Wednesday after a near-9% jump a day earlier.
- A Meta supply deal includes performance-based warrants for up to 160 million AMD shares, an SEC filing showed.
- Investors are watching Nvidia’s results later on Wednesday for a read on AI chip demand.
Advanced Micro Devices shares eased on Wednesday after surging in the prior session on news Meta Platforms would buy billions of dollars of its artificial-intelligence chips.
AMD was down about 0.3% at $213.26 in late morning trade, after ending Tuesday at $213.84. (MarketScreener)
The stock had jumped 8.8% on Tuesday after AMD said it agreed to sell up to $60 billion worth of AI chips to Meta over five years, a second “anchor customer” deal after a similar pact with OpenAI last year. (Reuters)
The deal lands as investors look for signs Big Tech’s spending on data centers is turning into orders that can support earnings, not just headlines. It also puts fresh attention on Nvidia, the market leader, which reports results later on Wednesday in a release traders have treated as a key test for the broader AI trade. (Reuters)
An AMD filing on Tuesday laid out one reason some traders are cautious: AMD issued Meta a performance-based warrant to buy up to 160 million shares at an exercise price of $0.01 a share, with vesting tied to purchases and shipments tied to “gigawatt equivalent” volumes of Instinct GPUs, plus stock-price targets that rise to $600 for the final tranche. (Advanced Micro Devices, Inc.)
AMD said it will supply six gigawatts’ worth of chips to Meta, starting with one gigawatt of its forthcoming MI450 hardware in the second half of 2026. AMD CEO Lisa Su said the design work was tuned for “inference,” the step where a model generates answers to a user’s prompt. (Reuters)
“Meta is locking in supply, diversifying away from a single vendor, and doing whatever it takes to make sure its AI ambitions aren’t bottlenecked by chips,” Matt Britzman, a senior equity analyst at Hargreaves Lansdown, said. He added the potential 10% stake “suggests it could be struggling to generate organic demand.” (Reuters)
Meta, for its part, said it plans to keep buying from other vendors and develop in-house processors alongside the AMD deal, underscoring how large buyers are spreading risk across suppliers.
Still, the agreement stirred up familiar questions about “circular” arrangements where customers take equity-linked stakes in critical suppliers, adding another layer of complexity when investors are already debating how quickly AI spending pays back.
Gil Luria, head of technology research at D.A. Davidson, called the Meta deal “significant validation” for AMD’s GPU technology, but said the “main negative impact” could fall on Broadcom, which investors have viewed as a key partner on Meta’s custom-chip work. (Reuters)
The risk case for AMD now is less about winning a headline contract and more about execution and the fine print: whether it can deliver at scale, and how investors model dilution and pricing power if large customers push for sweeteners like warrants.
For the rest of the week, traders will look first to Nvidia’s results later on Wednesday for a sector read-through, then to AMD’s next public appearances — including the Morgan Stanley Technology, Media & Telecom Conference on March 2 — for any added detail on timing and ramp expectations. (Reuters)
