AMD Secures Major Chip Order from Meta, Potential Equity Stake Follows
Shares of Advanced Micro Devices (AMD) surged as much as 14% on February 24, 2026, following an announcement of a substantial chip order from Meta. The agreement too includes the possibility of Meta taking an equity position in AMD, signaling a deepening strategic partnership between the two technology giants.
The deal will see AMD supply a significant volume of chips to Meta, bolstering the social media company’s infrastructure as it continues to invest heavily in artificial intelligence. Meta’s growing AI workload is driving demand for specialized processing power, and AMD is poised to become a key supplier. This partnership underscores the critical role of semiconductor technology in the rapidly evolving AI landscape.
According to reports, the chip order is substantial, though specific financial details were not disclosed. The potential for Meta to become a shareholder in AMD adds another layer of significance to the agreement, suggesting a long-term commitment to collaboration.
The partnership builds on AMD’s recent successes in the AI chip market. Meta’s selection of AMD reflects the company’s confidence in AMD’s ability to deliver the performance and scalability required for its ambitious AI initiatives. AMD has been actively developing AI-optimized data centers, including facilities in El Paso, Texas, and Beaver Dam, Wisconsin, to meet the increasing demand for AI processing.
Meta has been focused on AI breakthroughs throughout 2025, introducing the Meta AI app powered by Llama 4, launching Vibes, and sharing its vision for personal superintelligence. The company also hit 1 billion downloads of its open-source AI model, Llama, which is being utilized across various sectors, including national security, space exploration, and healthcare.
The agreement with Meta represents a major win for AMD, solidifying its position as a leading provider of AI chips and potentially opening up new avenues for growth through a strategic equity stake. The market reaction to the news demonstrates investor confidence in AMD’s prospects and the growing importance of AI in the technology sector.
