NEW YORK, Feb 25, 2026, 10:14 EST — Regular session
- AMD edged down roughly 0.3% early Wednesday, coming off a nearly 9% surge the previous session.
- Meta’s supply agreement comes with performance-based warrants covering as many as 160 million AMD shares, according to an SEC filing.
- Nvidia reports later Wednesday, with investors eyeing the numbers for clues about where AI chip demand stands.
Advanced Micro Devices shares slipped Wednesday, pulling back after a jump the previous session driven by Meta Platforms’ announcement—Meta plans to spend billions snapping up AMD’s artificial-intelligence chips.
AMD slipped roughly 0.3% to $213.26 in late morning action, easing back from Tuesday’s close at $213.84. 1
The stock surged 8.8% on Tuesday, following AMD’s announcement that it will supply as much as $60 billion in AI chips to Meta across five years. That’s its second “anchor customer” agreement, after inking a similar deal with OpenAI last year. 2
The agreement arrives while investors watch for hard evidence that Big Tech’s data center investments are translating into real revenue, not just hype. It also puts Nvidia in the spotlight—shares have been a bellwether for the entire AI trade ahead of its earnings due out later Wednesday. Traders are calling this release a major gauge for the sector. 3
Tuesday’s AMD filing spelled out a key worry for some traders: Meta holds a performance warrant that could allow it to snap up as many as 160 million AMD shares at just $0.01 apiece. The catch? Vesting depends on Meta’s purchases and actual shipments—specifically, “gigawatt equivalent” volumes of Instinct GPUs. There’s also a sliding stock-price component, with the upper vesting range capped if AMD hits $600 a share for the last tranche. 4
AMD announced a deal to deliver six gigawatts of chips to Meta—kicking off with one gigawatt from its upcoming MI450 line, scheduled for launch in the back half of 2026. CEO Lisa Su told reporters the chips are optimized for “inference,” the process where AI models respond to prompts. 5
“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,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. As for that potential 10% stake, he said it “suggests it could be struggling to generate organic demand.” 5
Meta says it will stick with purchasing from various vendors, even as it works on its own in-house chips and pushes ahead with the AMD deal. The move highlights how big tech buyers are hedging their bets across multiple suppliers.
Even so, the deal revived long-running concerns over “circular” setups—customers grabbing equity-linked interests in their own major suppliers. It’s yet another complication for investors, who are already wrestling with the timeline for returns on AI spending.
Gil Luria, who leads technology research at D.A. Davidson, described the Meta agreement as “significant validation” for AMD’s GPU lineup. The downside, he said, likely lands on Broadcom. Investors tend to see Broadcom as a central player in Meta’s custom-chip efforts. 6
For AMD, the main worry isn’t about snagging a blockbuster deal anymore. It’s about the nuts and bolts—can the company actually deliver volume, and what happens if big buyers start demanding perks like warrants? For investors, that means the focus shifts to modeling dilution and figuring out how much pricing power AMD keeps in those scenarios.
This week, traders are zeroed in on Nvidia’s earnings due late Wednesday, seeking clues for the sector. Next up, eyes will shift to AMD’s upcoming outings, notably its slot at the Morgan Stanley Technology, Media & Telecom Conference on March 2, with the focus on any new hints about timing or ramp plans. 3
