- AMD (NASDAQ:AMD) shares jumped after Meta announced a multiyear deal to deploy up to 6 gigawatts of AMD Instinct GPUs for its AI data centres, along with a performance‑based warrant for up to 160 million AMD shares
- The agreement deepens Meta and AMD’s partnership, aligning roadmaps across GPUs, EPYC CPUs, and the Helios rack‑scale architecture, with initial MI450‑based GPU shipments expected in 2H 2026
- The announcement coincided with Anthropic unveiling new enterprise AI plug-ins, lifting shares of partners like Salesforce, FactSet, and DocuSign under increased competition in the fast‑moving enterprise AI market
- Advanced Micro Devices stock (NASDAQ:AMD) opened at US$211.63
Shares of Advanced Micro Devices (NASDAQ:AMD) rallied on Tuesday after Meta (NASDAQ:META) announced a sweeping multiyear agreement to deploy up to 6 gigawatts of AMD Instinct GPUs across its next‑generation artificial intelligence data centres.
The chipmaker’s stock rose as much as 7–10 per cent in early Tuesday trading.
A massive AI infrastructure deal
The new partnership deepens the companies’ existing collaboration and includes a roadmap alignment across silicon, systems, and software. Under the agreement, AMD will supply Meta with custom Instinct GPUs based on the MI450 architecture, paired with 6th Gen EPYC CPUs (Venice) and integrated through the AMD Helios rack‑scale architecture, a system co‑developed through the Open Compute Project. Shipments for the first 1‑gigawatt deployment are scheduled to begin in the second half of 2026.
The full deployment—scaling to 6 gigawatts—marks one of the largest GPU infrastructure commitments ever announced. AMD calls the collaboration “multi‑year and multi‑generation,” spanning multiple future iterations of Instinct GPUs, EPYC CPUs, and AI‑optimized server designs.
Meta receives major equity incentive
To align incentives and secure long‑term commitments, AMD issued Meta a performance‑based warrant for up to 160 million shares of AMD common stock—roughly 10 per cent of the company. The first tranche vests upon the shipment of the initial 1 gigawatt of Instinct GPUs, with further tranches vesting as Meta’s purchases scale to the full 6‑gigawatt target. Vesting is also tied to AMD share‑price thresholds and Meta’s achievement of key technical and commercial milestones.
The equity structure closely mirrors AMD’s similar agreement with OpenAI in late 2025, signaling AMD’s increasingly aggressive use of equity‑linked deals to secure large hyperscale partnerships.
Expanded CPU partnership
In addition to GPUs, Meta will continue expanding its large‑scale use of AMD EPYC processors, having already deployed millions of EPYC CPUs across its global infrastructure. Meta will also be a lead customer for AMD’s future 6th Gen EPYC and the next‑generation “Verano” processor designed for workload‑specific optimizations. CPUs are becoming increasingly vital in AI compute stacks to manage orchestration, scaling, and inference workloads.
Context: Meta’s broader AI spending and competition
The deal comes just a week after Meta revealed it is simultaneously deploying millions of Nvidia (NASDAQ:NVDA) GPUs as part of its long‑term data centre expansion. Meta plans to spend up to $135 billion on capital expenditures this year alone—including chips, data centres, and model‑training capacity—as it races to compete with Google, Amazon, Microsoft, OpenAI, and Anthropic.
Market reaction: AI stocks get a boost
While AMD saw a sharp lift from the news, other AI‑linked companies also rallied Tuesday after Anthropic unveiled 10 new enterprise integrations for its Claude AI platform. The tools—developed with partners including LSEG, FactSet, Slack, and DocuSign—span investment banking workflows, HR automation, wealth‑management analytics, engineering, and design support. The announcement boosted shares of several partner firms: Salesforce (NYSE:CRM), FactSet (NYSE:FDS), and DocuSign (NASDAQ:DOCU).
Anthropic emphasized that the new plug‑ins integrate Claude with widely used business tools such as Google Calendar and Gmail. The rapid release cadence underscores the firm’s push to dominate the enterprise AI market ahead of a potential future IPO, competing directly with Google DeepMind, OpenAI, and Elon Musk’s xAI.
High stakes and high volatility
The AI software space remains volatile: just last month, a legal plug‑in released by Anthropic triggered an $830 billion selloff across global software stocks as investors feared accelerated automation could erode traditional revenue streams.
Advanced Micro Devices stock (NASDAQ:AMD) opened more than 7 per cent higher at US$211.63 and has risen more than 100 per cent since this time last year.
Join the discussion: Find out what the Bullboards are saying about chip stocks like AMD and check out Stockhouse’s stock forums and message boards.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
