Why Advanced Micro Devices Stock Just Popped

MrDecoder · 2026-02-24T15:47:23+00:00

Advanced Micro Devices (AMD) stock rose 6.1% after announcing a multi-year partnership with Meta, where Meta will purchase 6 gigawatts of AMD GPUs for AI infrastructure. This deal secures AMD a significant long-term customer and enhances its position in the AI market.

MrDecoder

2026-02-24 15:47:23

Abstract generation in progress

**Advanced Micro Devices **(AMD +7.72%) stock surged 6.1% in the first 10 minutes of trading Tuesday (9:40 a.m. ET) after announcing an “expanded strategic partnership” with Meta (META 0.32%):

Meta will buy 6 gigawatts-worth of AMD GPUs for artificial intelligence.

Image source: Getty Images.

Details, please

This partnership aims to help Meta “rapidly scale AI infrastructure and accelerate the development and deployment of cutting-edge AI models,” say the companies. And this partnership will be “multi-year,” and span “multi-generation[s]” of AMD chips.

The expanded partnership will begin with shipments of AMD Instinct GPUs and sixth-generation AMD Venice and Verano EPYC CPUs in the back half of 2026. Initially, the GPUs will be based on AMD’s newest MI450 architecture. The “multi-generation” aspect of the deal, however, implies Meta will keep buying AMD chips as capabilities advance.

All the GPUs and CPUs AMD sells to Meta will be tailored for “rack-scale architecture” – meaning they’ll be designed specifically for data centers.

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NASDAQ: AMD

Advanced Micro Devices

Today’s Change

(7.72%) $15.17

Current Price

$211.77

Key Data Points

Market Cap

$321B

Day’s Range

$206.51 - $213.39

52wk Range

$76.48 - $267.08

Volume

1.7M

Avg Vol

36M

Gross Margin

45.99%

What’s it mean for AMD?

Meta frames this partnership as a move to “diversify our compute” (as Mark Zuckerberg puts it) – making sure Meta doesn’t become _too _dependent upon AI chips from Nvidia.

To AMD CEO Dr. Lisa Su, though, the big significance is that this partnership secures a major long-term customer for its most advanced AI GPUs and CPUs. At the same time, allying with Meta puts AMD “at the center of the global AI buildout.”

Sidenote: To further cement the partnership (and win the sale), AMD agreed to give Meta a stock warrant to buy, from time to time, “up to 160 million shares of AMD common stock.” Given AMD’s current 1.6 billion share count, this deal could result in Meta owning 10% of AMD.

Do you think that might foreshadow Meta buying even more chips from AMD in the future?

I do.

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