Stock Market Today, Feb. 24: Advanced Micro Devices Surges After Meta Strikes Multiyear AI Chip Supply Deal
The Motley Fool
by newsfeedback@fool.com (Howard Smith)February 24, 2026
AI-Generated Deep Dive Summary
Advanced Micro Devices (AMD) saw its stock price surge by 8.77% on Feb. 24, closing at $213.84, following a major multiyear deal with Meta Platforms for AI chips and systems. The agreement includes the supply of 6 gigawatts of graphics processing units (GPUs) to support Meta's AI infrastructure. Additionally, AMD has granted Meta performance-based warrants, potentially allowing the acquisition of up to 160 million AMD shares—about 10% of the company.
This deal highlights AMD's growing role in the data center AI sector, which is increasingly competitive with Nvidia. While AMD's stock rose significantly, trading volume reached 79.8 million shares, nearly triple its three-month average. Meanwhile, rival companies like Intel and Nvidia also saw modest gains, with Intel closing up 5.71% at $46.12 and Nvidia rising 0.68% to $192.85.
The agreement underscores the high demand for AI chips as tech giants invest heavily in artificial intelligence infrastructure. AMD's partnership with Meta could position it more strongly against Nvidia, the current leader in AI chip technology. This deal also marks a significant milestone for AMD since its IPO in 1980, during which time its stock has grown over 6,689%. The broader market reflected this optimism, with the S&P 500 up 0.77% and the Nasdaq Composite climbing 1.04%.
For investors, this deal signals a potential shift in AMD's trajectory as it vies for a larger share of the AI chip market. The performance-based warrants add another layer of intrigue, offering Meta a pathway to acquire a significant stake in AMD if certain milestones are met. This agreement could reshape the competitive landscape in the AI and semiconductor industries, making it a key event for anyone following finance or tech trends.
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Originally published on The Motley Fool on 2/24/2026