AMD’s five-year agreement with Meta includes 6GW of Instinct GPUs, potentially generating over $60B in revenue.
Advanced Micro Devices Inc. (AMD) has entered a transformative five-year strategic agreement with Meta Platforms, involving 6 gigawatts (GW) of Instinct GPUs. The deal, starting with 1GW in delivery from the second half of 2026, is expected to generate “double-digit billions” in revenue per GW, totaling over $60B in long-term data center AI revenue for AMD.
AMD’s shares traded at $490.33 as of June 8th, with trailing and forward P/E ratios of 155.46 and 66.67, respectively. The agreement includes warrants for up to 160M AMD shares, representing roughly 10% potential dilution, tied to shipment milestones and performance conditions. The final tranche requires AMD’s share price to reach $600, aligning equity issuance with execution and market performance.