Meta 6GW GPU Deal Could Generate $23B–$25B Annual Revenue for AMD, BofA Targets $280
AMD secured a five-year GPU supply deal with Meta for up to 6GW starting in H2 2026, potentially generating $23–$25 billion in annual revenue from 2027–30 and $90–$100 billion over four years. BofA raised AMD’s price target to $280, while Goldman bumped theirs to $240.
1. Meta 6GW GPU Partnership
AMD signed a five-year agreement to supply Meta with up to 6GW of data-center GPUs beginning in the second half of 2026, with deployments expected to generate $23 billion to $25 billion in annual revenue from 2027 through 2030, or $90 billion to $100 billion over four years.
2. Bank of America Price Target Reset
BofA Securities maintained a Buy rating and raised its AMD price target to $280, citing the Meta deal’s support for a path to over $20 in EPS by 2030 and the strategic importance of AMD’s CPU and GPU offerings in AI workloads.
3. Analyst Ratings and Risks
Goldman Sachs lifted its AMD forecast to $240 with a Neutral rating, while JPMorgan held at Neutral, warning that up to 160 million performance-based warrants could dilute equity by $30 billion to $100 billion and pressure gross margins by 200–400 basis points.
4. AI Inference Market Outlook
The AI inference market is projected to grow from $106 billion to $255 billion by 2030, and AMD’s chiplet architecture, combined with OpenAI’s commitment to 6GW of GPUs, positions the company to capture significant share alongside rising CPU demand for AI applications.