AMD stock rockets 10% after Meta signs $60B AI chip megadeal

Advanced Micro Devices (NASDAQ: AMD stock) jumped more than 10% on Tuesday after the chipmaker struck a massive, multi-year deal to supply Meta Platforms with artificial intelligence chips.

The agreement is valued at up to $60 billion over five years.

The announcement puts real numbers behind AMD’s push to become a scaled alternative supplier of “AI compute,” the GPUs and systems that power large language models.

It also signals Meta’s growing urgency to lock in capacity, even as it continues buying heavily from Nvidia.

What’s inside the Meta deal

AMD and Meta said they agreed to a “definitive multi-year, multi-generation” partnership to deploy up to 6 gigawatts of AMD Instinct GPUs across Meta’s next-generation AI infrastructure.

The first deployment will use a custom AMD Instinct GPU based on the MI450 architecture, with shipments supporting the first gigawatt scheduled to begin in the second half of 2026.

AMD said the initial build also includes its 6th-gen EPYC CPUs, codenamed “Venice,” running ROCm software on the AMD Helios rack-scale architecture.

On the corporate messaging, both CEOs leaned into the “scale and diversification” theme.

AMD CEO Lisa Su said the partnership “places AMD at the center of the global AI buildout,” while Meta CEO Mark Zuckerberg called it “an important step for Meta as we diversify our compute.”

AMD CFO Jean Hu said AMD expects the partnership to drive “substantial multi-year revenue growth” and be accretive to non-GAAP EPS.

The most unusual piece is the equity sweetener.

AMD said it issued Meta a performance-based warrant for up to 160 million AMD shares, with vesting tied to shipment milestones as Meta’s purchases scale from the initial 1 gigawatt to 6 gigawatts.

The warrant has an exercise price of $0.01 per share and could allow Meta to buy as much as a 10% stake in AMD.

The vesting is linked to rising stock-price targets up to $600 as well as technical and commercial milestones.​

AMD stock: Warrant-fueled AI race

This structure is starting to look like a template for AMD’s AI dealmaking.

In October 2025, AMD announced a similar 6-gigawatt agreement with OpenAI, including a warrant for up to 160 million shares that vests in tranches tied to deployment milestones and share-price targets.

At the time, Barclays analyst Tom O’Malley described that OpenAI partnership as “designed to be mutually beneficial… and more pointedly drive the stock higher.”

Meta’s move also sits alongside its continued dependence on Nvidia.

Nvidia recently signed a multiyear deal to sell Meta “millions” of AI chips, including future products, underscoring that Meta is deliberately lining up more than one supplier rather than betting on a single vendor.​

For the stock, the market’s immediate reaction was straightforward as investors cheered on a long-dated revenue commitment with an embedded performance incentive.