Key Stats for Advanced Micro Devices Stock
- Price Change: +8.77%
- Current Price: $213.84
- Valuation Model Target: $768.02
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What Happened?
Advanced Micro Devices (AMD) shares surged 8.77% on February 24, 2026, following a special conference call detailing a new strategic partnership with Meta.
The semiconductor company announced a multi-year agreement to deploy 6 gigawatts of AMD Instinct GPUs across Meta’s AI infrastructure.
This deployment will utilize a custom GPU accelerator based on AMD’s MI450 architecture.
The custom chip is specifically optimized for Meta’s workloads and will be deployed using the Helios rack-scale architecture alongside AMD’s 6th Gen EPYC CPUs.
Initial shipments for the first gigawatt are scheduled to begin in the second half of 2026.
This partnership highlights a broader industry trend where Big Tech companies are actively diversifying their AI hardware supply chains.
During the special call, CFO Jean Hu quantified the financial scope of the agreement.
Hu stated verbatim: “The Meta deployment is expected to generate data center AI revenue of significant double-digit billions of dollars per gigawatt.”
To align strategic interests, AMD issued Meta a performance-based warrant for up to 160 million shares of AMD common stock.
The final tranches of this warrant will vest only if AMD reaches a stock price threshold of $600 per share.
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Is Advanced Micro Devices Undervalued Today?
The TIKR Model indicates that the market has not fully priced in the long-term earnings potential generated by these gigawatt-scale data center deployments.
The model projects a target price of $768.02, representing a 259.2% potential total return from current levels.
CEO Lisa Su emphasized how this customized approach leverages the company’s existing technological framework.
Su stated verbatim: “AMD’s leadership in chiplet design and advanced packaging is a key differentiator and enables us to rapidly leverage core building blocks of our AI platform and tailor them for the optimal compute, memory and networking needs of specific customer workloads.”
This modular approach allows AMD to offer custom solutions while maintaining the software compatibility and ecosystem scale of its standard MI450 platform.
Read the full Advanced Micro Devices Transcript on TIKR to see the revenue breakdown >>>
Valuation Deep Dive
The TIKR Advanced Valuation Model identifies Advanced Micro Devices as a primary beneficiary of the ongoing global artificial intelligence infrastructure build-out.
- Target Price: $768.02
- Current Price: $213.84
- Annualized Return (IRR): 30.1%
Data Center Revenue Scale: The 6-gigawatt deployment with Meta fundamentally reshapes AMD’s revenue trajectory. With each gigawatt expected to generate double-digit billions in revenue, the company has secured a highly visible pipeline spanning multiple years. This provides structural support for management’s target of achieving a data center AI business compound annual growth rate exceeding 80%.
Strategic Warrant Structure: The issuance of 160 million warrants directly ties Meta’s financial upside to AMD’s stock performance. Because the final vesting threshold requires a $600 share price, the partner is highly incentivized to scale its AMD-based infrastructure. This aligns both companies toward driving sustained revenue growth and achieving management’s goal of $20 in annual earnings per share within the next five years.
Conclusion: A defining partnership in the AI hardware sector. Advanced Micro Devices offers a projected 259.2% total return potential. The path to $768.02 is supported by the multi-billion-dollar Meta deployment, a highly aligned incentive structure, and expanding market share in custom data center accelerators.
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How Much Upside Does Advanced Micro Devices Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
