AMD and META Deepen AI Relationship: A Closer Look

Another AI-related headline involving a Mag 7 member has hit the headlines once again. But is anybody really surprised?

AMD and Meta Build Deeper Relationship

This time, it’s Advanced Micro Devices AMD and Meta Platforms META in the news, with the companies agreeing to a definitive multi-year partnership to deploy up to six gigawatts of AMD Instinct GPUs to support the development and deployment of META’s broader AI buildout.

Unsurprisingly, the deal further reinforces META’s massive spending on its broader AI mission, with the company forecasting total FY26 expenses in a band of $162 - $169 billion, the majority of which is allocated to infrastructure costs. The steep investments follow a similar theme we’ve seen among other Mag 7 members, namely Amazon and Microsoft, which have both also announced massive spending plans this year.

While all the spending takes up most of the attention, the reality is that META continues to post strong results overall, revealing in its latest release that average Family Daily Active People (DAP) across its family of apps in December 2025 was up 7% year-over-year to roughly 3.6 billion. Ad impressions, a key metric for the tech titan, grew 18% from the year-ago period, while average price per ad rose 6% from the same period last year.

Advertising revenue has remained strong for the tech titan, as shown below.

AMD posted strong results as well in its latest release, with Data Center sales of $5.4 billion throughout the reported period soaring nearly 40% higher to a new record. Below is a chart illustrating the company’s Data Center sales on a quarterly basis.

Advanced Micro Devices’ Gaming segment also has recovered nicely, with revenue of $843 million in the above-mentioned period soaring 50% year-over-year.

Both stocks have delivered somewhat disappointing performances in 2026 so far, as shown below. But over the past year, the performance disparity has been massive, with AMD shares massively outperforming relative to META, as shown in the chart below the YTD chart.

The performance disparity between the two can likely be explained by the fact that AMD is a direct beneficiary of the AI buildout, whereas META’s ever-rising CapEx has brought momentum to a halt.

Putting Everything Together

Advanced Micro Devices AMD and Meta Platforms META find themselves dominating headlines again thanks to AI-related news, with the pair deepening an already-existing relationship to support META’s broader AI buildout. AMD shares have seen a strong reaction to the news as a direct beneficiary, whereas META looks to reap gains in a longer-timeframe as its AI goals hopefully come to fruition.

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This article originally published on Zacks Investment Research (zacks.com).

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