AMD stock surges 14% on Meta AI partnership deal

Investing.com -- Advanced Micro Devices (NASDAQ: AMD) shares surged 14% Tuesday morning after the company announced an expanded strategic partnership with Meta to deploy up to 6 gigawatts of AMD GPUs for AI infrastructure.

AMD and Meta agreed to a definitive multi-year, multi-generation partnership to deploy AMD Instinct GPUs. Shipments supporting the first gigawatt deployment are scheduled to begin in the second half of 2026, powered by a custom AMD Instinct GPU based on the MI450 architecture and 6th Gen AMD EPYC CPUs, codenamed "Venice."

The deployment will be built on the AMD Helios rack-scale architecture, which was announced at the 2025 Open Compute Project Global Summit. The architecture was developed jointly by AMD and Meta through the Open Compute Project to enable scalable, rack-level AI infrastructure.

As part of the agreement, AMD issued Meta a performance-based warrant for up to 160 million shares of AMD common stock. The warrant is structured to vest as specific milestones associated with Instinct GPU shipments are achieved. The first tranche vests with the initial 1-gigawatt of shipments, with additional tranches vesting as Meta’s purchases scale to 6 gigawatts.

Meta has been deploying millions of AMD EPYC CPUs and significant deployments of AMD Instinct MI300 and MI350 series GPUs across their global infrastructure. The company will be a lead customer for 6th Gen AMD EPYC CPUs, including "Verano," a next-generation EPYC processor designed with workload-specific optimizations.

AMD CFO Jean Hu said the company expects the partnership to drive substantial multi-year revenue growth and be accretive to non-GAAP earnings per share.

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