AMD Lands 6GW Meta GPU Deal Valued up to $100B with 160M Share Warrants
AMD agreed to supply Meta with up to 6GW of data center GPUs starting H2 2026, potentially generating $23–25B annually from 2027 to 2030. The deal includes performance warrants for up to 160M shares that could dilute equity and pressure gross margins by 200–400 basis points.
1. Deal Details
AMD’s new agreement with Meta Platforms commits up to 6 gigawatts of MI450 GPU capacity beginning in the second half of 2026. Analysts estimate this deployment could generate $23 billion to $25 billion in annual revenue from 2027 through 2030, totaling up to $100 billion over four years.
2. Warrant Structure and Dilution
The deal provides Meta with performance-based warrants for up to 160 million AMD shares, representing roughly 10% of current equity. If exercised, these warrants could dilute shareholders and reduce gross margins by an estimated 200 to 400 basis points on revenue tied to the partnership.
3. Analyst Reactions
JPMorgan maintained a Neutral rating while highlighting big revenue upside but cautioning on margin and warrant risks. Goldman Sachs also stays Neutral after raising its price target to $240, and BofA Securities reiterates a Buy rating with a $280 target, citing long‐term EPS upside.
4. Strategic Impact
This partnership strengthens AMD’s position with top-tier hyperscalers and reinforces its custom chiplet platforms. Analysts note potential gains in server CPU share at Meta and heightened competition against Nvidia and Broadcom in AI infrastructure.