AMD Expands Meta GPU Partnership with 6GW Deployment and MI450 Shipments
AMD unveiled expanded multi-year GPU partnership with Meta deploying up to 6 gigawatts of data center GPUs and early MI450 shipments, fueling a one-day 7.5% surge. Options volume doubled with 193,000 calls and analysts maintain an average $277.62 12-month target, a 32.1% premium.
1. Expanded Multi-Year Partnership with Meta
AMD signed a multi-year agreement with Meta to deploy as many as 6 gigawatts of its data-center GPUs and will deliver early shipments of its new MI450 GPU for AI workloads. This deal follows AMD’s prior collaboration with OpenAI and positions the company to capture a larger share of Meta’s AI infrastructure spending.
2. Stock Reaction and Analyst Sentiment
Shares climbed 7.5% to $212.21, marking the best one-day gain since January 21 and pushing the stock up 95% over the past 12 months. Out of 46 firms covering AMD, 33 rate it a buy or strong buy, with an average 12-month price target of $277.62, a 32.1% premium to current levels.
3. Options Activity and Volatility Metrics
Trading activity spiked with 193,000 calls and 137,000 puts exchanged, roughly double the average intraday volume, led by the weekly 2/27 210- and 220-strike calls. The equity’s Schaeffer’s Volatility Index of 59% sits in the 33rd percentile, while its Volatility Scorecard ranks 94 out of 100, indicating past volatility often exceeded market expectations.