Advanced Micro Devices Jumps 9% on $60B Meta GPU Deal and 59% Earnings Growth Outlook
Advanced Micro Devices shares rose 9% after securing a multi-year pact to supply Meta with up to 6 gigawatts of AI data center GPUs valued at over $60 billion. Analysts forecast 59% earnings growth and a median price target near $298, suggesting potential to breach $300.
1. Deal Details and Financial Terms
Advanced Micro Devices has agreed to supply Meta Platforms with up to 6 gigawatts of AI data center GPUs over a multi-year period. The arrangement carries a potential value exceeding $60 billion across five years, marking one of the largest known GPU supply commitments in the industry.
2. Stock Reaction and Analyst Projections
Shares of Advanced Micro Devices jumped 9% on the announcement, reflecting investor enthusiasm for expanded AI infrastructure demand. Wall Street analysts have raised earnings forecasts by 59% and set a median target of $298, indicating scope for the share price to surpass $300 if AI spending accelerates as expected.