New York, February 24, 2026, 17:01 EST — After-hours
- Meta dropped 2.8% in after-hours trading, with AMD detailing a multi-year deal to supply AI chips.
- The deal features warrants that might let Meta snap up as much as 10% of AMD, if exercised.
- Next up: Nvidia reports earnings Wednesday, offering the market its key update on AI demand.
Shares of Meta Platforms dropped 2.8% to $639.30 in after-hours action on Tuesday, after the company announced a new AI infrastructure expansion involving a chip supply deal with Advanced Micro Devices.
The agreement is grabbing attention as investors grow uneasy over AI spending, with Meta among the heaviest hitters. Locking in supply could clear up some of the jam, though it also highlights questions about when those hefty hardware bets start to generate returns.
Meta has already warned investors to brace for a significant jump in 2026 capex — that’s spending on data centers, servers, and other gear — as it ramps up for AI. Investors now watch that guidance as closely as ad revenue, with both moving the needle for the shares. (Source: 1 )
AMD announced a deal to supply up to 6 gigawatts of its Instinct GPUs for Meta’s AI buildout, with the first gigawatt of shipments scheduled for the second half of 2026. CEO Lisa Su described the agreement as “one of the industry’s largest AI deployments.” Finance chief Jean Hu added the Meta partnership is expected to be accretive to non-GAAP EPS. (Source: 2 )
Meta described the deal as a move toward a “portfolio-based approach” to computing, blending third-party vendors with its own efforts. “This is an important step for Meta as we diversify our compute,” CEO Mark Zuckerberg said. (Source: 3 )
AMD revealed plans to supply Meta with as much as $60 billion in AI chips over five years, leaving the door open for Meta to acquire up to 10% of the semiconductor firm under the deal’s structure. “Meta is locking in supply, diversifying away from a single vendor,” noted Hargreaves Lansdown’s Matt Britzman. Meta’s infrastructure chief Santosh Janardhan put it this way: “All of the chip makers end up having sort of a seat at the table.” (Source: 4 )
A regulatory filing spells out the details of the warrant deal tied to Meta’s possible stake. According to AMD, Meta got a performance-based warrant letting it buy as many as 160 million AMD shares at just $0.01 apiece. Those shares vest in stages, depending on Meta’s purchases of AMD Instinct GPU products and whether AMD’s stock hits a series of price hurdles, the highest set at $600 a share. The warrant remains valid through Feb. 23, 2031. (Source: 5 )
Meta shares slipped in a lackluster day for the tech heavyweights, enthusiasm held in check despite chip deal activity picking up across the sector.
Investors are zeroing in on the growing web of equity sweeteners and cross-holdings in these partnerships. Mike Mussio, who leads FBB Capital Partners, described it as a “circular deal” setup—prompting some to question, as he put it, “what this all really means.” (Source: 6 )
The bullish story faces two clear snags: it’s still unclear when—if ever—AI investment will actually turn into meaningful returns, and Meta is still dealing with ongoing legal and regulatory headaches tied to privacy and safety. A court filing from a New Mexico case, just unsealed, detailed internal concerns over Meta’s expansion of end-to-end encryption in messaging across Facebook and Instagram. One Meta executive didn’t hold back, blasting the effort as “so irresponsible.” (Source: 7 )
Next, Nvidia’s quarterly results land Wednesday, Feb. 25—a key moment for traders watching the AI-chip story and trying to gauge if sector spending is ramping up or stalling out. “People are so concerned about AI spending — whether we’re in a bubble,” said Ivana Delevska, chief investment officer at Spear Invest. (Source: 8 )
