Meta-AMD AI Deal Triggers Unique Equity Structure Involving NVDA Shares
Feb 25, 2026 (20 hr ago)
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A massive multi-year GPU deal between Meta and AMD introduces a unique performance-based equity structure tied to NVDA shares.
Meta-AMD GPU Deal & Equity Linkage
- Meta secured a multi-year, 6-gigawatt GPU deal with AMD as part of its ongoing AI infrastructure buildout3
- This agreement includes an unusual structure where NVDA will issue 160 million common stock shares to Meta upon AMD hitting specific performance milestones5
- The first tranche of NVDA shares vests when AMD ships its initial 1 gigawatt of chips to Meta5
Competitive Landscape and Product Deployment
- AMD's Helios rack scale system, featuring EPYC CPUs, will deploy the first MI450 line GPUs in the second half of the year5
- Meta's agreement with AMD suggests diversification away from sole reliance on NVDA for critical AI infrastructure components3
- NVDA had previously announced a similar deal with Meta last week, indicating ongoing competition for large-scale AI contracts3
Upcoming Earnings Scrutiny
- NVDA's upcoming quarterly results will provide a crucial update on demand for its high-tech AI chips from hyperscalers2
- Investors are currently scrutinizing heavy AI-related capital spending by these hyperscalers ahead of the report1
- Customer spending on CAPEX and chips from major clients like Microsoft, Amazon, and Google remains substantial6
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Meta strikes massive 6-gigawatt AI chip deal with AMD
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