AMD stock rose on Tuesday after the chipmaker announced a $1 billion investment in Meta’s equity offering alongside an expansion of their partnership to develop computing infrastructure for artificial intelligence workloads.
Shares of Advanced Micro Devices (NASDAQ: AMD) gained more than 4% during the session, as investors assessed the implications of the agreement and analyst expectations ahead of the company’s third-quarter results, scheduled for November 3.
The expanded partnership covers central processing units (CPUs), graphics processing units (GPUs), networking, systems and software to support Meta’s AI infrastructure and services.
AMD expands Meta partnership across AI infrastructure
AMD said its Helios rack-scale solutions are installed and being tested at Meta, with broader deployment planned.
The companies are also working together on future generations of computing platforms to address the growing demands of AI workloads.
AMD EPYC processors support the computing environments used by Meta’s Muse AI agent, while AMD 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, according to the company.
The partnership also includes AMD Pensando networking technology and ROCm software infrastructure.
AMD said it 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 collaborating on 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 between the companies.
Meta founder and CEO Mark Zuckerberg said AMD had been an important partner in developing the computing infrastructure used to run the company’s frontier AI models.
Analysts assess AMD’s growth outlook ahead of earnings
Analyst expectations for AMD’s data-centre business remain a key focus ahead of its quarterly results.
GF Securities raised its price target on AMD to $720 ahead of the November 3 earnings release.
Analyst Jeff Pu expects the company to report results broadly in line with expectations, although he anticipates a potentially weaker outlook for the current quarter.
Pu noted that investor expectations were high but said 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.
The analyst 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.
Bernstein analyst Stacy Rasgon maintained a Buy rating on AMD and set a price target of $650.
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