Advanced Micro Devices (AMD) Signs Multi-Year Meta AI Deal

Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the 15 best stocks to invest in according to billionaires.

On February 25, D.A. Davidson maintained its Neutral rating on Advanced Micro Devices Inc. (NASDAQ:AMD), with a $220 price target. This leads to an upside potential of almost 10% at the prevailing level.

The reiteration follows AMD’s announcement of a multi-year agreement with Meta Platforms to purchase more than $100B in AI computing capacity. D.A. Davidson views the partnership as a constructive development for AMD’s broader technology ecosystem and software capabilities, particularly as demand for AI infrastructure continues to strengthen.

On the same day, TD Cowen also maintained its Buy rating on Advanced Micro Devices Inc. (NASDAQ:AMD), with a $290 price target. The firm cited AMD’s recently announced multi-year partnership with Meta, which includes 6 gigawatts of AI compute capacity to support Meta’s next-generation infrastructure. The agreement features performance-based warrants and a customization component, similar to AMD’s prior arrangement with OpenAI.

Advanced Micro Devices Inc. (NASDAQ:AMD) is a multinational semiconductor company that designs high-performance computing, graphics processing units, and visualization technologies. The company also offers AI accelerators, microprocessors, embedded processors, and SoC products. The business is structured into three segments: Data Center, Client & Gaming, and Embedded.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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