Advanced Micro Devices shares rose 9% following the announcement of a multi-year strategic partnership with Meta Platforms to supply artificial intelligence data center graphics processing units. The agreement, potentially valued at $60 billion or more over a five-year period, establishes AMD as a key supplier for Meta's expanding AI infrastructure buildout.
Under the partnership, AMD will provide Meta with up to 6 gigawatts of GPU capacity, with meaningful revenue contributions expected to begin in the second half of 2026. The deal reflects the technology sector's substantial capital allocation toward AI infrastructure, as major cloud platforms and technology companies compete to secure advanced computing resources for large language model deployment and operation.
Wall Street analysts have responded positively to the partnership announcement, with consensus forecasts projecting 59% earnings growth for AMD in the coming year. The median price target among analysts stands at $298 per share, suggesting limited upside from current levels, though some observers view the deal as validation of AMD's competitive positioning in the high-demand AI semiconductor market.