AMD Shares Soar 8.8% on $60B Meta AI Chip Deal
Advanced Micro Devices shares jumped 8.8% after securing a five-year deal to sell up to $60 billion of AI chips to Meta Platforms, with Meta able to acquire up to 10% equity. AMD’s Q4 data center segment grew 32% year-over-year on strong demand for EPYC server CPUs and Instinct accelerators.
1. Deal Details and Terms
Advanced Micro Devices secured a five-year agreement to supply up to $60 billion of artificial intelligence chips to Meta Platforms, including a provision that allows Meta to purchase up to a 10% stake in AMD. The pact covers server CPUs and accelerators for data center deployments starting in 2026.
2. Stock Market Reaction
Following the announcement, AMD shares soared 8.8% in afternoon trading, marking one of the largest single-day gains in the past year. The move reflects renewed investor confidence in AMD’s positioning within the AI hardware market.
3. Data Center Segment Performance
AMD’s data center revenue grew 32% year-over-year in the fourth quarter, driven by strong sales of EPYC server processors and Instinct accelerators. This segment has become a key growth driver, offsetting softer demand in other areas of the semiconductor cycle.
4. AI Hardware Demand Outlook
With hyperscalers expanding AI infrastructure spending, AMD is positioned to capture increased market share alongside competitors, supported by its expanding product lineup and strategic partnerships. The company plans additional chip releases later in 2026 to meet evolving AI compute requirements.