Advanced Micro Devices (NASDAQ: AMD) saw its shares rise more than 4% on Tuesday, following the announcement of a $1 billion investment in Meta's equity offering and an expanded collaboration to build computing infrastructure for artificial intelligence workloads. The move underscores AMD's deepening ties with Meta as both companies push to scale AI capabilities.
The expanded partnership spans central processing units (CPUs), graphics processing units (GPUs), networking, systems, and software, all aimed at supporting Meta's AI infrastructure and services. AMD's Helios rack-scale solutions are already installed and being tested at Meta, with broader deployment planned, according to the company.
AMD's EPYC processors are used in Meta's computing environments, including its Muse AI agent, while Instinct GPUs are deployed for training, ranking, and recommendation systems. Meta has deployed millions of EPYC processors across multiple generations and is a lead customer for AMD's sixth-generation EPYC CPUs. The collaboration also includes AMD Pensando networking technology and ROCm software infrastructure.
AMD provided Day-0 support for Meta's Muse Spark Open models on Instinct GPUs and Muse Glimmer on Ryzen AI PCs and Radeon GPUs. The companies are jointly developing future EPYC processors, including Verano, as well as Instinct MI500-series GPUs and next-generation rack-scale systems.
AMD Chair and CEO Lisa Su described Meta as a strategic partner, citing years of technical collaboration. Meta founder and CEO Mark Zuckerberg echoed that sentiment, noting AMD's importance in building the computing infrastructure for Meta's frontier AI models.
Analysts Assess AMD's Growth Outlook Ahead of Earnings
With AMD's third-quarter results scheduled for November 3, analyst attention is focused on the company's data-centre business. GF Securities raised its price target on AMD to $720, while Bernstein's Stacy Rasgon maintained a Buy rating with a $650 target.
GF Securities analyst Jeff Pu expects AMD to report results broadly in line with expectations, though he anticipates a potentially weaker outlook for the current quarter. Pu noted that investor expectations are high, but the growth of agentic AI could support AMD's data-centre business. He expects the company to reiterate its outlook for data-centre growth of well over 100% year over year in 2027.
Pu also highlighted AMD's server CPU product cycle, increased wafer supply, and the anticipated contribution from its MI450 and MI455X products. GF Securities expects revenue from Helios rack shipments to remain limited initially, with shipments beginning to ramp up in the first quarter of 2027. Pu forecast server CPU revenue growth of 100% year over year in 2027 and 50% in 2028, citing expansion in the server market and AMD's product roadmap.
The investment in Meta comes at a time when AI-related financing deals are drawing scrutiny, as companies increasingly rely on strategic investments to fund massive infrastructure buildouts. AMD's move aligns with a broader trend of chipmakers and tech giants deepening financial ties to secure AI supply chains.
This article is for informational purposes only and does not constitute financial advice.
