Rosenblatt confirmed a Buy rating and preserved a $300.00 price target on Advanced Micro Devices stock (NASDAQ:AMD) in the wake of AMD’s expanded technology and supply arrangement with Meta. The analyst reiterated its positive stance as the company’s shares have climbed 82% over the past year and AMD’s market capitalization sits at $352.5 billion.
Rosenblatt described the broadened partnership as very positive for AMD’s Instinct GPU and EPYC CPU product families. The firm said the multi-year, multi-billion dollar agreement helps validate AMD’s ability to scale its architecture into high-volume production, an outcome Rosenblatt views as supportive of the company’s longer-term product strategy.
The analyst note highlighted AMD’s chiplet architecture as a key advantage. According to Rosenblatt, the chiplet approach provides flexibility to adapt to the range of workloads Meta runs, and reduces the need for developing bespoke ASICs from the ground up for individual workloads or small subsets of workloads. That flexibility was framed as a cost-avoidance benefit relative to alternate design approaches.
Rosenblatt also referenced a warrant component associated with the transaction, interpreting the offer as confirmation of a long-term commitment to AMD’s product roadmap. The firm said it addressed concerns raised by some observers about potential circular financing or pay-to-play arrangements in connection with the warrant structure.
Looking ahead, Rosenblatt expects AMD will announce additional multi-year, multi-billion dollar agreements in the coming months, signaling the analyst’s view that the Meta deal may not be an isolated large-scale contract.
Other recent developments
AMD disclosed a separate multi-year agreement with Meta Platforms to supply up to 6 gigawatts of AI infrastructure. That arrangement calls for deployment of AMD’s Instinct GPUs and EPYC CPUs, with shipments slated to begin in the second half of 2026. Meta’s stated aim for the deal is to bolster its AI computing capacity.
Market reaction has been mixed. DA Davidson initiated coverage of AMD with a Neutral rating and a $220 price target, citing the company’s competitive efforts in the AI accelerator market. Mizuho analyst Jordan Klein voiced doubts about the sustainability of AMD’s recent stock gains following the Meta announcement, noting potential challenges ahead. Separately, AMD named Ariel Kelman as its new Chief Marketing Officer to oversee its global marketing efforts.
Taken together, these moves underscore the company’s strategic actions to strengthen its market position in high-performance computing and AI infrastructure.