What Happened?
Advanced Micro Devices (AMD) shares experienced a notable increase of 8.77% on February 24, 2026, closing at $213.84. This surge followed the announcement of a multi-year strategic partnership with Meta Platforms, which involves deploying 6 gigawatts of AMD Instinct GPUs across Meta’s AI infrastructure. The partnership is expected to generate substantial revenue, with initial shipments slated to begin in the second half of 2026.
Why It Matters
The agreement with Meta includes a performance-based warrant that could grant Meta up to a 10% equity stake in AMD, contingent on specific stock-price targets. This collaboration reflects a broader trend among major tech companies to diversify their AI hardware supply chains, positioning AMD as a key player in the rapidly growing AI accelerator market. Analysts project a bullish outlook for AMD, with a consensus Buy rating and an average price target of approximately $263, indicating significant potential upside.
What’s Next?
Investors are closely monitoring AMD’s performance as it prepares for initial shipments and the ongoing demand for AI chips. The upcoming earnings report from Nvidia is also expected to influence market sentiment, as it could provide insights into the overall demand for AI hardware. With AMD’s MI300 series AI accelerators gaining traction, the company aims to capture a larger share of the market, which could further impact the amd stock price in the near future.
