TLDR
- AMD stock rose 5.7% on March 5 after CEO Lisa Su announced strong AI chip demand and a major Meta partnership.
- AMD and Meta struck a 6-gigawatt, multi-year deal using AMD’s Instinct GPUs to power Meta’s AI infrastructure.
- Piper Sandler and Jefferies both maintained $300 price targets and bullish ratings following the Meta announcement.
- AMD launched its Ryzen AI 400 series processors and announced a $150 million investment with Nutanix.
- The stock closed at $202.14 but remains down roughly 9.5% year-to-date.
Advanced Micro Devices (AMD) had a strong day on March 5, with its stock climbing 5.7% during afternoon trading to close at $202.14.
Advanced Micro Devices, Inc., AMD
The jump came after a string of announcements tied to AMD’s growing AI business, including a major new deal with Meta Platforms.
AMD and Meta have entered into a 6-gigawatt, multi-year partnership. The deal will use AMD’s Instinct GPUs to build out Meta’s AI infrastructure, with initial deployment expected to start in the second half of 2026.
CEO Lisa Su called the arrangement “transformational” for the company. Su also stated that demand for AMD’s processors has “far exceeded” her expectations, driven by businesses rushing to buy AI hardware.
Piper Sandler reaffirmed its Overweight rating on AMD on February 25, keeping its price target at $300. The firm said the Meta deal could position AMD to generate around $100 billion in revenue over the next five years.
Piper Sandler also expects Wall Street analysts to revise their revenue and earnings-per-share estimates upward as the deal progresses. The warrants tied to the deal are set to expire in February 2031.
Jefferies followed on February 24, reaffirming its Buy rating with the same $300 price target. The firm noted the Meta deal follows a similar structure to AMD’s October 2025 agreement with OpenAI, where AMD exchanged warrants for GPU revenue.
Jefferies acknowledged these deals carry a cost for AMD. But the firm said they help establish market presence and could lead to future business.
AMD Launches New Chips and Research Lab
Beyond the Meta deal, AMD released its new Ryzen AI 400 series processors. These chips are designed for the next generation of AI-powered laptops and computers.
AMD also announced a $150 million investment into a partnership with Nutanix to build a new AI platform.
The company is launching a new research lab at the University of Toronto, focused on advancing chip development.
What Analysts Are Saying
The consensus rating on TipRanks for AMD is Moderate Buy. That’s based on 23 Buy ratings and eight Hold ratings over the past three months.
The average price target sits at $286.04, which represents a potential 41.55% upside from current levels.
The March 5 rally helped recover some losses from earlier in the week. A broad sell-off had hit the Nasdaq after oil price spikes and war-related concerns rattled markets.
Despite the strong day, AMD stock is still down roughly 9.5% so far this year.
AMD closed March 5 at $202.14.
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