TLDR
- AMD rallies after Meta locks in $100B AI chip supply deal
- Meta targets 6GW AI power with major AMD partnership
- Share warrant milestones link AMD growth to Meta demand
- AI hardware race boosts AMD against Nvidia dominance
- Texas expansion supports AMD’s long-term AI strategy
AMD (AMD) shares opened the session with strong momentum and then stabilized near $214 after an 8.85% gain. The move followed a major supply agreement with Meta that signaled a new phase for large-scale AI computing. The market reacted quickly, and AMD share demand strengthened as expectations shifted around long-term chip supply growth.
Advanced Micro Devices, Inc., AMD
Meta Secures Multi-Year Supply and Expands AI Power Targets
Meta signed a $100 billion chip agreement with AMD and advanced its plan for massive AI infrastructure growth. The company expects the deal to support six gigawatts of data center power as new systems come online. The parties outlined an initial shipment wave tied to one gigawatt that begins in the second half of the year.
The agreement includes AMD’s latest MI540 and CPU platforms, which aim to increase compute scale across Meta’s expanding workloads. The structure uses performance milestones to release a warrant for up to 160 million AMD shares at one cent each. The milestone plan continues to vest as Meta’s demand for AI hardware increases across new deployments.
Meta confirmed that the final share tranche requires AMD to reach a $600 stock price under the vesting terms. The arrangement signals confidence in future chip output and in Meta’s broader effort to diversify compute supply. The partnership also strengthens Meta’s push toward personal superintelligence systems designed to support everyday tasks.
AMD Strengthens Competitive Position as AI Hardware Demand Accelerates
AMD expanded its footprint in advanced computing as more firms seek alternatives to costly GPU supply. Its CPU lineup gained new relevance because modern inference workloads need efficient scaling across dense clusters. The expanded role of CPUs supported the company’s plan to grow its AI portfolio with balanced architectures.
The firm has pursued several stake-linked agreements this year, and each one positions AMD for wider market access. A similar arrangement with OpenAI earlier this year aligned chip purchases with AMD’s long-term roadmap. These deals indicate a shift toward diversified procurement as large platforms distribute compute needs across more vendors.
Major operators continue to broaden supplier networks as AI model use grows across regions. Nvidia still holds a central role in training systems, yet elevated pricing encouraged new sourcing paths. As a result, AMD gained new momentum as data center operators increased orders for future expansion.
Regional Growth and Market Reaction Support AMD’s Long-Term Strategy
AMD expanded operations in Central Texas for decades and now runs key leadership functions from Austin. The company employs thousands in the region and added a new data center project near Rockdale. This footprint supports rapid scaling as demand accelerates across national buildout programs.
Meta maintains a significant Texas presence as well, and new construction will extend its compute reach. The company confirmed at least $600 billion in upcoming U.S. data center and AI investments. A new $10 billion gas-powered campus in Indiana will anchor one gigawatt of compute capacity.
AMD shares climbed sharply during early trading and continued to show strength through the session. Market sentiment improved because the agreement reinforced AMD’s role in next-generation compute. The partnership set the stage for expanding AI hardware supply over the next several years.
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