MW AMD's stock rockets as Meta deal serves as major validation point for investors

By Britney Nguyen

As Meta looks to diversify beyond Nvidia, it's making a big bet on AMD chips and obtaining a chance to invest in the company

AMD, led by Lisa Su, has a new deal with Meta.

Shares of Advanced Micro Devices were surging Tuesday morning after the chip maker struck a new deal that helps validate the company's position as a key artificial-intelligence player.

Meta Platforms (META) announced that it will deploy up to six gigawatts' worth of AMD's $(AMD)$ Instinct graphics processing units in a multi-year partnership that is slated to start in the second half of this year. The first chip deployment involves a custom GPU based on AMD's next-generation MI450 architecture, and is optimized to support Meta's AI workloads, according to the chip maker.

The social-media giant will also deploy AMD's sixth-generation Epyc central processing units and first-ever rack-scale system, Helios, through the partnership, AMD CEO Lisa Su said in a statement.

AMD has also issued Meta a warrant to purchase up to 160 million shares of its common stock that will vest as the GPU shipments reach certain milestones. The first tranche of shares will vest with the first gigawatt deployment, according to AMD, and following tranches will vest as the partnership goes on.

"We're excited to form a long-term partnership with AMD to deploy efficient inference compute and deliver personal superintelligence," Meta CEO Mark Zuckerberg said in a statement, adding that the deal is part of an effort to diversify where the company gets its compute.

AMD's stock was up 10% in premarket action Tuesday, while Meta's stock was down fractionally.

-Britney Nguyen

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February 24, 2026 07:53 ET (12:53 GMT)

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