AMD partners with Meta to power AI infrastructure with Helios systems

AMD will invest $1B in Meta's equity offering and expand its partnership, covering CPUs, GPUs, networking, systems, and software to support Meta's services and AI infrastructure.

AMD stock rose 3.2% after announcing a $1B investment in Meta's equity and deploying AI solutions. Meta named AMD a lead customer for 6th Gen EPYC CPUs. Analysts maintain Buy ratings with targets up to $725. Intel's upgrade by New Street Research also boosted sentiment. AMD traded at $555, up from $531.28.

Meta (META) is raising $37.5B through a stock and preferred-share offering, with plans for an additional $60B ATM program starting in 2027, totaling $97.5B. The funds will support AI infrastructure spending, with capital expenditure expected to reach $135B-$145B in 2026. Meta aims to secure financing early amid intense AI competition.

Meta Platforms plans to sell up to $95 billion in stock, including $35 billion in underwritten shares and $60 billion in a planned at-the-market program. Chip suppliers NVIDIA, AMD, and Broadcom expressed interest in buying up to $5 billion. Meta's stock fell 1.88% to $630.56, while suppliers' stocks rose. The move aims to fund AI investments without adding debt.

Broadcom (AVGO) rose 3% after DA Davidson upgraded it to Buy with a $400 target, citing ties to Anthropic's IPO and AI spending cycle. Anthropic's filing describes Broadcom as a supplier and lessor of AI computing equipment. NVIDIA (NVDA) and AMD (AMD) also gained, with the semiconductor ETF (SOXX) up 2%.

AMD (AMD) announced a $1B investment in Meta and expanded hardware deployment, including Helios systems and EPYC processors. Meta uses AMD Instinct GPUs for AI workloads, with plans for future collaboration. Both companies highlighted the strategic partnership's importance for AI infrastructure.