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AMD Stock Price: More than $100 billion chip deal with Meta

US Street Talk News Desk February 24, 2026
3 min read
AMD Stock - US Street Talk
AMD Stock - US Street Talk

New York, 24 February 2026: Advanced Micro Devices Inc. (NASDAQ: AMD) shares saw a strong surge on Wall Street today. The stock jumped 11 to 14 percent in pre-market trading following a multi-year AI chip supply deal worth over $100 billion with Facebook owner Meta Platforms. The stock, which closed at $196.60 yesterday (23 February), traded around $215-$218 this morning.

Key features of the Meta-AMD agreement:

  • Multi-generation partnership for deploying 6 gigawatt AMD Instinct GPUs.
  • Shipments start from the second half of 2026, with GPUs based on the custom MI450 architecture and 6th Gen EPYC CPUs
  • Using AMD Helios rack-scale architecture.
  • Meta has the right to purchase 160 million shares (10% stake) through a performance-based warrant – full vesting if the stock reaches $600.
  • According to WSJ, each gigawatt is worth ‘double-digit billions’ of dollars, totaling over $100bn.

This deal is another big win for AMD after the previous similar deal with OpenAI.

AMD Q4 2025 earnings: Record profits, but initial disappointment due to guidance

In the fourth quarter results announced on 3 February 2026, AMD delivered record performance:

  • Quarterly revenue: $10.3 billion (34% YoY increase, higher than expected).
  • Data centre segment: $5.4 bn (39% YoY growth) – strong demand for EPYC processors and MI350 series Instinct GPUs.
  • Full year 2025: $34.6 billion revenue (34% YoY), record profit.
  • 8 out of 10 top AI companies are now using Instinct GPU.

Still, the $9.8 billion guidance for Q1 2026 (slightly down QoQ) caused the stock to drop 17-20%. CEO Dr Lisa Su said, “The data centre AI franchise will grow rapidly in 2026.”

What are AMD stock traders looking at?

  • Progress of MI450 and MI400 series GPU ramp and Helios platform.
  • AI capex of hyperscalers like Meta, OpenAI, Amazon, Google ($500B+ by 2026).
  • Competition with Nvidia and gaining market share (AMD’s Instinct GPU is now being used for production workloads).
  • Technical levels: Support $190-$196, Resistance $220-$230.
  • Q1 2026 results (May 2026) and the impact of China regulation.

What do US market analysts say? AMD stock price target

The 12-month price target of 40+ analysts averages $280-$288 (30-46% upside from the current $196.60).

  • Maximum: $380
  • Minimum: $210
  • Most ratings: Buy / Moderate Buy (Benchmark $325, Evercore $328, Rosenblatt $300).

What could be the triggers for the next rally?

  • Meta and OpenAI deals to convert into revenue from H2 2026.
  • MI450/MI400 series’ fast ramp and enterprise AI adoption.
  • Over 60% CAGR actual growth in the data centre segment
  • Strong Q1/Q2 results and gross margin expansion.
  • Broader AI boom – Meta, Microsoft, Amazon spending billions of dollars.

Analysts’ AMD stock forecast until 2030

AMD management’s own estimate: total revenue 35%+ CAGR in the next 3-5 years, data centre 60%+ CAGR.

  • According to Motley Fool’s analysis: If achieved, the stock could rise 348% – $700+ per share and a trillion-dollar market cap.
  • Other estimates: $300-$450 (some models $400+), strong outlook due to long-term AI demand.

Conclusion

Meta’s deal has established AMD as a strong alternative to Nvidia. The Q4 results showed the strength of the AI franchise, and today’s deal boosts confidence in future growth. 2026 is going to be a key year for traders and investors – the AI trade is likely to heat up again. But we need to consider competition, valuation (P/E 40x+) and market sentiment.

Disclaimer: This article is just for information. Stock investment is risky, get independent advice.