AMD Stock Today: Meta 6GW AI GPU deal, 160M warrant — February 25
AMD stock is in focus today after Meta agreed to deploy up to 6GW of AMD MI450 AI GPUs and accepted a performance-based warrant for 160 million shares. The Meta AMD deal signals multi‑year demand, with first shipments expected in the second half. For Canadian investors, the move strengthens AMD’s role as the main alternative to Nvidia in data centres. We break down the impact on AMD stock price, valuation, near-term catalysts, and what to watch next.
Meta’s 6GW AI build and the 160M-share warrant
Meta plans to deploy up to 6 gigawatts of AMD MI450 accelerators, pointing to a large, multi‑year ramp in AI infrastructure. Management indicated first shipments begin in the second half, which should aid revenue visibility and EPS accretion over several quarters. The scale places AMD alongside top AI buyers and supports a broader supply chain, from boards to networking.
Meta accepted a performance-based warrant for 160 million AMD shares, aligning outcomes with deployment milestones and real‑world performance. While exact triggers were not detailed, the structure signals deep collaboration and execution focus. Coverage highlights the scope and timing of the partnership: see Yahoo Finance and CNBC.
Market reaction and Nvidia setup
AMD stock price recently traded at $213.84 USD, up $17.24 (+8.77%) on heavy volume of 81.37 million versus a 35.64 million average. Intraday ranged between $206.50 and $216.71, with the 50‑day average at $219.82 and a 52‑week high of $267.08. The move reflects confidence that AI GPUs demand remains strong and that shipment timing in H2 supports estimates.
The announcement positions AMD as the primary alternative to Nvidia for AI GPUs at hyperscale. Attention now shifts to Nvidia earnings later today, which could sway sentiment across accelerators. Early strength in AMD stock also reflects buyers preparing for potential second‑source adoption. First mention of peer NVDA appears here as a key cross‑check for data centre trends.
Fundamentals, valuation, and Street stance
Recent metrics show revenue growth of 34% year over year for FY2025, with net income and EPS up roughly 164%. Gross margin stands near 49.5%, and operating margin about 10.7%. Balance sheet quality looks sound with a current ratio of 2.85 and low net debt. These trends support the thesis that AI data centre demand can compound operating leverage through 2026.
AMD trades around 80.39x TTM EPS of 2.61 and about 10.06x sales, implying execution risk is priced in. Free cash flow yield is about 1.93%. Analyst coverage skews constructive: 49 Buy, 15 Hold, 1 Sell. Next catalyst is earnings on 2026‑05‑05. We would watch order visibility from the Meta AMD deal and broader hyperscale pipelines.
Key trading levels and a Canada-focused playbook
RSI at 49.22 is neutral, while MACD is negative, showing consolidation after the pop. The middle Bollinger Band sits near $217.84, with ATR at 11.74 indicating elevated daily swings. Near-term support is Monday’s $206.50 low, with resistance around $216.71 and the 50‑day at $219.82. The 52‑week high is $267.08, a longer-term reference.
Canadian buyers face USD exposure, so currency swings can boost or reduce returns. Consider holding U.S. dollars in registered accounts to reduce conversion costs and review hedging if volatility rises. AMD pays no dividend, so tax drag is limited. Track Nvidia’s print today and AMD’s 2026‑05‑05 report for updates on shipment timing, margins, and AI GPUs orders. First mention of AMD applies here.
Final Thoughts
Meta’s plan to deploy up to 6GW of MI450 accelerators and its 160 million performance-based warrant deepen a strategic relationship that could add multi‑year revenue and EPS for AMD. The market reaction, with strong volume and an upward move, shows investors expect durable AI spending and recognize AMD as the main second source to Nvidia. Valuation is rich, so execution on deliveries, software maturity, and networking integration must follow. For Canadian investors, mind FX costs, watch Nvidia’s results today for read‑through, and revisit position sizes ahead of AMD’s May 5 earnings. If estimates rise on firm orders and H2 shipments, AMD stock could justify current multiples.
FAQs
What is the Meta AMD deal and why does it matter?
Meta plans to deploy up to 6GW of AMD MI450 AI GPUs, with first shipments expected in the second half. Meta also accepted a 160 million share performance-based warrant. The scope signals multi‑year demand and positions AMD as the key alternative to Nvidia, potentially supporting revenue growth and margin leverage through 2026.
How could Nvidia earnings affect AMD stock today?
Nvidia’s results and guidance influence sector sentiment and AI spending expectations. Strong demand signals for accelerators, networking, and software can lift peers, including AMD. Conversely, any signs of slowing orders or supply constraints may pressure valuations. Traders will also compare pricing, performance per watt, and delivery timelines against AMD’s roadmap.
Is AMD stock expensive at current levels?
AMD trades near 80.39x TTM EPS and about 10.06x sales, which is premium. The market is pricing strong AI data centre execution, expanding margins, and rising orders. If Meta and other hyperscalers scale deployments on time, the premium can hold. Missed milestones or weaker guidance would challenge the multiple.
What should Canadian investors consider before buying AMD?
AMD trades in USD, so currency moves impact CAD returns. Using USD accounts can reduce conversion costs, and hedging may help during volatility. AMD pays no dividend, limiting withholding tax issues. Monitor Nvidia’s earnings today and AMD’s May 5 update for visibility on shipments, margins, and AI GPUs order flow.
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.