What Happened
On February 24, 2026, AMD (NASDAQ: AMD) and Meta announced a significant expansion of their strategic partnership, agreeing to deploy up to 6 gigawatts of AMD Instinct™ GPUs to enhance Meta’s AI infrastructure. This multi-year agreement aims to align the companies’ silicon, systems, and software roadmaps, with the first shipment of custom AMD Instinct GPUs based on the MI450 architecture expected in the second half of 2026.
Why It Matters
The partnership is notable for its scale, as AMD is set to sell up to $60 billion worth of AI chips to Meta over the next five years. This deal not only strengthens AMD’s position in the competitive AI chip market but also reflects the growing demand for advanced processors in the AI sector. Following the announcement, AMD’s stock experienced a surge of over 10% in premarket trading, indicating strong investor confidence in the company’s future prospects.
What’s Next
As shipments for the first gigawatt deployment begin later this year, investors will be closely monitoring AMD’s performance and its ability to meet the demands of this landmark agreement. Additionally, the partnership may lead to further collaborations within the AI industry, as Meta and other tech giants explore similar arrangements with chip manufacturers. The implications of this deal could significantly influence AMD’s stock trajectory in the coming months.
