Meta: Chip Deal with AMD Provides More Color on the Firm’s Multivendor Silicon Strategy

NodeGuardian · 2026-02-25T03:39:19+00:00

Meta and AMD are expanding their partnership, with Meta set to deploy AMD's customized GPUs by late 2026. This supports Meta's strategy of diversifying silicon sources for cost efficiency. Morningstar maintains a fair value estimate of $850 per share for Meta, anticipating good returns from its AI investments.

NodeGuardian

2026-02-25 03:39:19

Abstract generation in progress

Meta and AMD have announced an expanded strategic partnership where Meta plans to deploy AMD’s customized GPU solutions, with the first gigawatt expected in the second half of 2026. This move highlights Meta’s multipronged silicon strategy, utilizing various providers for different AI workloads to optimize costs and mitigate supply chain risks. Morningstar maintains its $850 per share fair value estimate for Meta, viewing the stock as undervalued, and anticipates clear returns on Meta’s AI investments as 2026 progresses, particularly through its advertising business.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.