AMD Stock Today: Meta $60B AI Deal, 10% Warrant Lifts Outlook — February 26
AMD stock is in focus after Meta agreed to buy up to US$60 billion of AI chips over five years and secured a performance-based warrant for about 10% of the company. The AMD stock rose 7.56% to US$211.47, signaling confidence in AMD’s MI450 and Helios systems that are due to ship later this year. For Singapore investors, this adds multi-year demand visibility but also raises questions on warrant dilution, execution, and competition with Nvidia. We break down the deal, the warrant math, valuation, and key watchpoints this week.
Meta’s multi-year AI order changes the game
Meta plans to deploy 6GW of AI compute using AMD accelerators, with orders that could reach up to US$60 billion over five years. MI450 and Helios systems are expected to begin shipping later this year, supporting Meta’s model training and inference needs. The agreement validates AMD’s AI roadmap against Nvidia and adds long-demand visibility for data center GPUs CNBC.
AMD stock climbed 7.56% to US$211.47, with an intraday range of US$210.33 to US$216.70. Despite the pop, shares sit below the 50-day average of US$219.82 and remain down 4.31% year to date. Singapore investors trading U.S. equities should note the stock’s higher volatility, with an ATR of 11.74, and plan position sizing around wider daily swings.
10% performance warrant: dilution vs upside
Meta obtained a performance-based warrant that could equal about 10% of AMD if deployment milestones are met as the buildout scales to 6GW. Based on 1.63 billion shares outstanding, full exercise would imply roughly 163 million new shares. The structure aims to align long-term supply and adoption while rewarding delivery against specific targets Bloomberg.
A full 10% exercise would be dilutive to existing holders, though higher revenue from a US$60 billion pipeline could offset earnings per share pressure over time. The actual impact depends on warrant strike, vesting triggers, and margin profile of MI450 and Helios shipments. Investors should watch for SEC filings that detail pricing, tranches, and performance hurdles.
Fundamentals, valuation, and Street stance
The agreement supports multi-year revenue visibility and better factory planning. Key questions are supply timing, competitive pricing versus Nvidia, and gross margin durability. AMD trades at a P/E of about 81.93 and a price-to-sales of 10.06, with R&D at roughly 23.36% of revenue. Delivery against milestones will be central to sustaining a premium multiple.
Street sentiment remains positive with 49 Buy, 15 Hold, and 1 Sell ratings. Our system shows a Stock Grade of B+ with a BUY suggestion, reflecting growth, sector positioning, and forecasts. A company rating of B and an earnings date set for 5 May 2026 frame the next checkpoints for guidance, data center mix, and margin trends.
What Singapore investors should watch now
Nvidia’s results and commentary on supply, pricing, and customer mix could swing AI chip peers this week. For AMD, watch shipment timing for MI450 and Helios, Meta’s deployment pace toward 6GW, and any updates on warrant mechanics. News flow on other hyperscaler wins would further support the AM D stock narrative and demand visibility.
RSI at 49.22 signals neutral momentum and MACD remains negative. Price is below the 50-day average of US$219.82 and near the Bollinger middle band at US$217.84. Traders in Singapore can consider staggered entries, stops below recent swing lows, and smaller sizes given ATR of 11.74. Long-term holders may add on weakness toward support.
Final Thoughts
Meta’s commitment to deploy 6GW of AMD accelerators and spend up to US$60 billion over five years is a strong vote of confidence in AMD’s AI roadmap. The performance-based warrant, however, brings potential 10% dilution that must be weighed against larger shipments, scale benefits, and better factory utilization. For Singapore investors, the setup favors a measured approach. Consider building exposure in phases, track filings for full warrant details, and watch Nvidia’s guidance for read-through on supply, pricing, and customer demand. Near term, technicals remain mixed, so risk controls matter. Medium term, consistent execution on MI450 and Helios could sustain premium valuation and support further gains in AMD stock.
FAQs
What exactly did Meta agree to buy from AMD?
Meta plans to deploy 6GW of AI compute using AMD accelerators and could spend up to US$60 billion over five years. Shipments of MI450 and Helios systems are expected to begin later this year, supporting training and inference at scale. This provides AMD multi-year demand visibility if milestones are met.
How could the 10% warrant affect AMD shareholders?
If fully exercised, the warrant would add roughly 10% to AMD’s share count, which is dilutive. The offset is potential revenue growth from large, recurring orders and better factory utilization. The net effect depends on strike price, vesting triggers, and margin profile on MI450 and Helios shipments over time.
Is AMD stock expensive after the Meta news?
AMD trades around 81.9 times earnings and about 10 times sales, which is rich versus many chip peers. Premium multiples can persist if growth, margins, and market share improve. If execution or margins slip, the multiple could compress. Investors can scale entries and reassess after the next earnings update.
What should Singapore investors watch in the near term?
Key items are Nvidia’s results, any updates on Meta’s deployment pace, AMD’s shipment timing for MI450 and Helios, and SEC filings with full warrant terms. On the chart, monitor the 50-day average near US$219.82 and volatility. Consider position sizing and staggered buys to manage risk around news swings.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.