New York, Feb 25, 2026, 16:01 EST — The session wrapped up with markets now closed.
- AMD slipped 1.5% Wednesday, a day after it surged 8.8% following news of its Meta AI infrastructure deal.
- The deal features a performance-based warrant, potentially covering as many as 160 million AMD shares, contingent on hitting specific shipment milestones and share price targets.
- All eyes on Nvidia, with traders hoping for clues about AI chip demand when the company reports results after Wednesday’s close.
Advanced Micro Devices finished Wednesday at $210.74, down 1.5%, as the stock pulled back after a sharp rally the previous day tied to news of a major AI supply agreement with Meta Platforms. On Tuesday, AMD had soared 8.8% to close at $213.84.
The retreat is significant: Meta’s deal is exactly the sort of hyperscaler win AMD has been after in data-center GPUs. But there’s a twist—this agreement includes a rare kicker that could end up diluting existing shareholders. Now, investors are left weighing the revenue AMD locked in against whatever it wound up sacrificing to get there.
AMD and Meta struck a multi-year, multi-generation agreement that could see up to 6 gigawatts’ worth of AMD Instinct GPUs powering Meta’s next wave of AI infrastructure. The first gigawatt in shipments is on track for the second half of 2026. “Place AMD at the center of the global AI buildout,” said AMD CEO Lisa Su, while Meta’s Mark Zuckerberg pointed to a chance to “diversify our compute.” SEC
According to an SEC filing, AMD granted Meta a performance-based warrant allowing the purchase of up to 160 million AMD shares for just $0.01 apiece. The structure is similar to options, entitling Meta to buy shares at a fixed price down the line. AMD noted that the shares vest in tranches linked to shipment targets, but there’s a catch: vesting also hinges on AMD shares reaching a series of rising price hurdles—topping out at $600 for the last batch. The warrant is set to expire on Feb. 23, 2031.
Initial reactions from Wall Street landed all over the map. Evercore ISI’s Mark Lipacis bumped up his price target, and over at KeyBanc, John Vinh noted the structure might “secure Meta’s commitment.” Jefferies’ Blayne Curtis flagged that some gains were “already baked in,” though the deal did give AMD’s AI ambitions a shot in the arm. TipRanks
That timing’s deliberate. Meta has ramped up investment in AI data centers, and back in late January, the company projected 2026 capital spending between $115 billion and $135 billion to back its “superintelligence” ambitions, according to Reuters. Reuters
Semiconductors have been jolted by AI news, yet the chip sector overall has stayed resilient even with individual stocks jumping around. The Philadelphia Semiconductor Index climbed roughly 1.7% Wednesday, building on Tuesday’s 1.5% advance, data from Investing.com show.
Still, there’s plenty in the details to dampen enthusiasm. Rollout won’t happen right away, and AMD faces a tough to-do list: custom silicon, systems integration, large-scale supply—each needs to click into place before those headline “gigawatt” figures become real, recurring revenue.
Then there’s the straightforward dilution angle. Should Meta both earn and use the warrant, AMD’s outstanding share count climbs. Investors would be left hashing out for years just how much of the transaction’s value ended up returned via equity.
Now, focus shifts to Nvidia’s quarterly results, landing after the bell on Wednesday. Traders are combing through for cues on AI chip demand and pricing, hoping for insight into what’s next for AMD and other rivals before the U.S. market opens Thursday.
