Meta and AMD Unveil 6-GW AI GPU Partnership as Citi Sees $50B Revenue Chance
META•Meta Platforms and Advanced Micro Devices launched a 6-GW AI infrastructure partnership with custom Instinct MI450 GPUs, reinforcing Meta's AI computing capabilities. Citi raised AMD's price target to $575 and assigns a 60% probability that AMD will exceed $50 billion in GPU revenue by 2028, citing strong demand from Meta.
1. Meta and AMD Launch 6-GW AI Infrastructure
Meta Platforms partnered with Advanced Micro Devices to deploy six gigawatts of AI infrastructure powered by custom AMD Instinct MI450 GPUs, marking a significant expansion of Meta's data center AI computing capacity.
2. Citi Projects GPU Revenue and Raises Price Target
After assessing Meta's AI partnership, Citi adjusted its AMD price target from $460 to $575, estimating a 60% probability that AMD will generate over $50 billion in GPU revenue by 2028, highlighting investor skepticism about full upside potential.
3. Implications for Meta's AI Strategy
The collaboration underscores Meta's commitment to in-house AI computing power and diversifies its supplier base, potentially accelerating deployment of AI-driven features across social media and virtual reality platforms while influencing capital expenditures on future GPU upgrades.
