Advanced Micro Devices (AMD) stock saw a significant jump of 14% following the announcement of a major multi-year partnership with Meta Platforms. This agreement involves AMD supplying Meta with its MI300 chips, specifically designed for artificial intelligence tasks. The deal is a substantial boost for AMD's AI business, positioning Meta as its largest customer for these accelerators and aiming to challenge Nvidia's current dominance in the AI chip market.
Reports indicate this multi-generation agreement could be worth over $100 billion, potentially leading to Meta owning up to 10% of AMD's stock. Meta's strategic move to increase its purchase of AMD's MI300 chips helps the company diversify its AI chip suppliers, moving beyond a primary reliance on Nvidia. The news also positively impacted other networking and AI stocks, including Arista Networks, Nvidia, and Broadcom.
In the broader AI investment landscape, prominent investors are adjusting their portfolios. Billionaire David Tepper of Appaloosa Management has reduced his stakes in both Nvidia and AMD, redirecting funds into other promising AI-related companies. Similarly, Philippe Laffont, founder of Coatue Management, sold significant holdings in Nvidia and Meta Platforms, now identifying ServiceNow as his top AI stock due to its role in enabling AI infrastructure.
Meanwhile, the cybersecurity sector is not expected to face a major crisis from AI, according to analysts. Products like Anthropic's Claude Code Security assist in securing code, but they do not replace the need for comprehensive, layered security defenses. Goldman Sachs chief economist noted that AI investment contributed "basically zero" growth to the US economy in 2025, largely because much of the spending, including on components for Nvidia chips, occurs overseas. Oracle is also pursuing AI opportunities, though valuation concerns persist.
The demand for AI infrastructure is driving other market shifts. Sandisk's stock surged 1,250% in the past year, fueled by its role in providing storage for AI data centers. However, increased production from competitors like Micron and Samsung could eventually impact Sandisk's profit margins. A recent report also highlighted "sketchy methods" used to inflate AI company valuations, where different investors fund a company at drastically varied prices simultaneously.
Finally, Protege is actively expanding its sales capabilities within the healthcare AI sector. The company is hiring a Business Development Representative to build a specialized outbound sales engine, aiming to accelerate customer acquisition and strengthen its competitive position in this growing area.
Key Takeaways
- AMD secured a multi-year, multi-generation agreement to supply Meta Platforms with its MI300 AI chips.
- This deal is reportedly worth over $100 billion and could result in Meta owning up to 10% of AMD's stock.
- Meta's partnership with AMD aims to diversify its AI chip suppliers and challenge Nvidia's market dominance.
- Billionaire investors David Tepper and Philippe Laffont have reduced stakes in Nvidia and AMD, shifting investments to other AI opportunities.
- Philippe Laffont has identified ServiceNow as his new top AI stock, focusing on companies that enable AI infrastructure.
- Anthropic's Claude Code Security offers tools for securing code, but analysts affirm AI will not eliminate the need for traditional cybersecurity defenses.
- Goldman Sachs reported that AI investment provided "basically zero" growth boost to the US economy in 2025, largely due to overseas spending on components.
- Sandisk's stock surged 1,250% over the past year, driven by demand for storage in AI data centers, though increased competition may affect future margins.
- A report highlighted "sketchy methods" used to inflate AI company valuations through disparate investment prices.
- The AMD-Meta deal positively impacted networking and AI stocks, including Arista Networks, Nvidia, and Broadcom.
AMD stock soars 14% on major Meta AI chip deal
Advanced Micro Devices (AMD) stock jumped 14% after announcing a new partnership with Meta Platforms. AMD will supply Meta with its MI300 chips, designed for artificial intelligence tasks. This deal helps Meta diversify its AI chip suppliers beyond Nvidia. The partnership is a significant boost for AMD's AI business and could lead to more customers adopting their AI chips.
Meta and AMD strike multi-billion dollar AI chip agreement
Meta and AMD have agreed to a significant deal for AI chips, reportedly worth over $100 billion. This agreement could lead to Meta owning up to 10% of AMD's stock. The partnership aims to help AMD challenge Nvidia's dominance in the AI chip market. The deal was announced on Tuesday.
AMD stock climbs on Meta AI infrastructure deal
Advanced Micro Devices (AMD) announced a multi-year agreement to supply Meta Platforms (META) with 6 gigawatts of data center processors. This deal is described as a multi-generation partnership between the two companies. The announcement caused AMD's stock to rise. Meta also recently made a similar supply arrangement with AMD's competitor, Nvidia.
Meta buys AMD AI chips in major infrastructure deal
Meta Platforms is significantly increasing its purchase of artificial intelligence chips from Advanced Micro Devices (AMD) as it builds its AI infrastructure. The companies have entered a multiyear agreement making Meta AMD's largest customer for its MI300 chips. This move aims to diversify Meta's chip suppliers away from Nvidia. AMD's stock saw a jump following the news, as the MI300 accelerator is a key competitor to Nvidia's H100 chip.
Billionaire David Tepper sells Nvidia AMD shares for new AI stocks
Billionaire David Tepper, founder of Appaloosa Management, has reduced his stakes in Nvidia (NVDA) and AMD (AMD). He is shifting his focus to other promising artificial intelligence stocks. While specific details of the sales are private, Tepper is reinvesting the funds into different AI-related companies. This move highlights the dynamic nature of the tech sector and the ongoing search for growth in AI investments.
Philippe Laffont shifts AI focus, sells Nvidia Meta for ServiceNow
Billionaire Philippe Laffont, founder of Coatue Management, has sold significant stakes in Nvidia and Meta Platforms. He has identified ServiceNow (NOW) as his new top artificial intelligence stock. Laffont believes ServiceNow, a workflow automation company, has a strong advantage in enabling AI infrastructure. This strategic shift suggests a focus on companies that facilitate AI deployment rather than just developing core AI technologies.
Japan's Nikkei gains as trading resumes, AI stocks perform well
Japan's Nikkei index rose as trading reopened following a holiday. Artificial intelligence-related stocks showed strong performance. The Nikkei's gains reflect broader market trends and investor interest in the technology sector.
Analysts: AI won't destroy cybersecurity industry
Cybersecurity companies are not expected to face a major crisis due to artificial intelligence, according to analysts. While new AI products like Anthropic's Claude Code Security can help secure code, they do not replace the need for layered security defenses against network intrusions or phishing. Industry leaders like CrowdStrike and Palo Alto Networks believe their platforms can handle AI threats. Many investors and analysts view the recent stock drop in cybersecurity as an overreaction.
Oracle's AI hopes clash with valuation concerns
Oracle's investment story is evolving as the company pursues artificial intelligence opportunities. While there is optimism surrounding its AI capabilities, concerns about its valuation persist. The company's strategy involves leveraging AI to enhance its cloud services and database offerings. Investors are closely watching Oracle's ability to translate AI investments into significant growth and profitability.
Goldman Sachs: AI investment barely boosted US economy in 2025
Goldman Sachs chief economist states that AI investment provided 'basically zero' growth boost to the US economy in 2025. Much of the investment in AI, including components for Nvidia chips, is spent overseas. While companies like Nvidia, Oracle, and Meta are investing heavily, they are not yet profitable on a large scale. This suggests that current AI investments are focused on future potential rather than immediate economic gains for the US.
Sandisk stock surges 1,250% driven by AI demand
Sandisk's stock has surged 1,250% in the past year, largely due to its role in providing storage devices for AI data centers. A shortage of memory products has allowed Sandisk to raise prices and increase profit margins. However, competitors like Micron and Samsung are increasing production, which could eventually lower prices and impact Sandisk's margins. While Sandisk benefits from current demand, its long-term position may face challenges as supply catches up.
Report reveals sketchy methods inflating AI company valuations
A report details a questionable practice used to inflate the valuations of AI companies. This technique involves multiple parties investing in a company at drastically different prices around the same time. For example, one startup reportedly became a 'unicorn' overnight after a second funding round valued it significantly higher than an earlier one. Venture capitalists acknowledge this method can artificially boost valuations and create a perception of a company being a clear winner.
Protege hires to boost healthcare AI sales
Protege is expanding its sales capabilities in the healthcare AI sector by hiring a Business Development Representative. The company is creating a specialized outbound sales engine for healthcare AI infrastructure. This move suggests Protege aims to accelerate customer acquisition and revenue growth in this key area. By strengthening its presence in healthcare AI, Protege seeks to improve pipeline visibility and its competitive position.
AMD Meta deal boosts networking and AI stocks
Networking and artificial intelligence stocks saw significant gains following the major deal between AMD and Meta Platforms. The agreement, reportedly worth billions, involves Meta purchasing AI chips from AMD over several years. This deal is expected to increase demand for AI infrastructure and related networking components. Stocks like Arista Networks, Nvidia, and Broadcom experienced notable increases, highlighting the growing investment in AI and the importance of high-performance computing.
Sources
- AMD stock surges 14% on Meta AI partnership deal
- Meta and AMD Agree to AI Chips Deal Worth More Than $100 Billion
- AMD Stock Rises On Meta AI Infrastructure Deal
- Meta and AMD announce 6-gigawatt GPU deal as part of AI build-out, AMD stock jumps
- This Billionaire Just Sold Nvidia and AMD Shares to Buy These AI Stocks
- Billionaire Philippe Laffont Has a New No. 1 AI Stock After Selling Shares of Nvidia and Meta Platforms
- Japan's Nikkei rises as trading resumes after holiday, AI-related stocks shine
- AI apocalypse isn't coming for cybersecurity industry, analysts say
- How The Oracle (ORCL) Investment Story Is Shifting With AI Hopes And Valuation Doubts
- AI boosted US economy by 'basically zero' in 2025, says Goldman Sachs chief economist — 'We think there's been a lot of misreporting of the impact that AI investment had on GDP growth'
- Up 1,250% in 1 Year, Is Sandisk the Best AI Stock to Invest in Right Now?
- Report Details the Sketchy Technique Allegedly Inflating Valuations of AI Companies
- Protege Expands Healthcare AI Sales Capability With Business Development Hire
- Networking, AI stocks jump on back of AMD-Meta megadeal
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