AMD shares jumped more than 10% in premarket trading after the company announced a major AI chip deal with Meta Platforms.
The deal will supply Meta, the parent company of Facebook and Instagram, with 6 gigawatts of AMD Instinct GPUs to power its AI infrastructure.
Shipments for the first gigawatt are set to begin in the second half of 2026. While financial terms were not officially disclosed, reports suggest the deal could be worth over $100 billion.
As part of the agreement, Meta could end up owning up to 10% of AMD’s stock. AMD also issued Meta a performance-based warrant for up to 160 million shares, tied to GPU shipment milestones.
AMD CEO Lisa Su said the company is excited to strengthen its long-term partnership with Meta. Meta CEO Mark Zuckerberg called the deal “an important step” as the company diversifies its computing power.
The news comes as AMD shares had fallen about 8% year-to-date amid a broader pullback in the AI chip market. Rival Nvidia also slipped ahead of its earnings report.
Investors see the deal as a major vote of confidence in AMD’s AI chips, which have increasingly competed with Nvidia for top clients in the AI space.
