TLDR
- Colin Sebastian from Robert W. Baird reaffirmed his Buy rating on Advanced Micro Devices with a $300 price objective, highlighting the Meta collaboration and enhanced AI revenue forecasting.
- AMD and Meta have entered into a multi-year agreement for deploying up to 6 gigawatts worth of AMD Instinct GPUs throughout Meta’s artificial intelligence infrastructure.
- Initial deliveries totaling 1GW are planned for late 2026, featuring MI450-based GPUs combined with EPYC “Venice” CPUs on the Helios rack-scale architecture.
- A milestone-driven warrant structure could grant Meta up to 160 million AMD shares, potentially representing approximately 10% ownership upon full execution.
- Evercore ISI maintains its Buy recommendation on AMD stock with a $358 price objective.
Advanced Micro Devices has secured what could be described as one of the most significant AI hardware partnerships in the industry’s history.
On February 25, 2026, Meta and AMD officially announced a definitive, multi-year, multi-generation collaboration to integrate up to 6 gigawatts of AMD Instinct GPUs into Meta’s evolving AI infrastructure.
The magnitude of this partnership is remarkable. Robert W. Baird analyst Colin Sebastian notes that each gigawatt deployed could translate into billions of dollars in revenue for AMD.
Advanced Micro Devices, Inc., AMD
Sebastian has reaffirmed his Buy recommendation on AMD stock while maintaining his $300 price objective.
He emphasized that the Meta partnership significantly enhances visibility into AMD’s AI revenue stream across multiple years — extending well beyond short-term quarterly forecasts.
The initial 1GW shipment phase is slated to commence during the latter half of 2026. These deployments will feature a customized Instinct GPU based on AMD’s MI450 architecture, operating on the Helios rack-scale platform created through the Open Compute Project framework.
This inaugural deployment phase will also integrate the MI450 GPU with AMD’s 6th-generation EPYC CPUs, designated by the codename “Venice,” utilizing ROCm software.
The Warrant Deal
Among the most notable elements of this agreement is a performance-linked warrant arrangement covering up to 160 million AMD shares.
The warrant vests progressively as shipment targets are achieved — beginning with the initial 1GW delivery and expanding through the complete 6GW commitment. Various technical and commercial benchmarks must also be satisfied.
According to reports from the Financial Times and Associated Press, if fully executed, this arrangement could provide Meta with approximately 10% ownership in AMD. This structure directly connects Meta’s financial stake to AMD’s operational performance.
Meta characterized the partnership as a strategic move toward greater flexibility and redundancy in its AI computing infrastructure by diversifying its supplier base rather than relying on a single vendor.
AMD described the agreement as an extended ramp-up encompassing GPUs, EPYC CPUs, and rack-scale configurations optimized for Meta’s particular computational requirements.
Analyst Reaction
Evercore ISI has also reaffirmed its Buy rating on AMD with a $358 price target — representing the more optimistic of the two analyst perspectives discussed.
Both analysts interpret the Meta partnership as tangible evidence that AMD is establishing itself as a viable competitor to Nvidia in large language model infrastructure deployments.
The milestone-based warrant structure adds an intriguing dimension — it creates alignment between Meta’s financial interests and AMD’s capacity to execute and deliver at enterprise scale.
AMD’s initial 1GW shipments destined for Meta are expected to commence in the second half of 2026.
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