AMD and META Deepen AI Relationship: A Closer Look

Another AI-related headline involving a Mag 7 member has hit the headlines once again. But is anybody really surprised?AMD and Meta Build Deeper RelationshipThis time, it’s Advanced Micro Devices AMD and Meta Platforms META in the news, with the companies agreeing to a definitive multi-year partnership to deploy up to six gigawatts of AMD Instinct GPUs to support the development and deployment of META’s broader AI buildout.Unsurprisingly, the deal further reinforces META’s massive spending on its broader AI mission, with the company forecasting total FY26 expenses in a band of $162 - $169 billion, the majority of which is allocated to infrastructure costs. The steep investments follow a similar theme we’ve seen among other Mag 7 members, namely Amazon and Microsoft, which have both also announced massive spending plans this year.While all the spending takes up most of the attention, the reality is that META continues to post strong results overall, revealing in its latest release that average Family Daily Active People (DAP) across its family of apps in December 2025 was up 7% year-over-year to roughly 3.6 billion. Ad impressions, a key metric for the tech titan, grew 18% from the year-ago period, while average price per ad rose 6% from the same period last year.Advertising revenue has remained strong for the tech titan, as shown below.Image Source: Zacks Investment ResearchAMD posted strong results as well in its latest release, with Data Center sales of $5.4 billion throughout the reported period soaring nearly 40% higher to a new record. Below is a chart illustrating the company’s Data Center sales on a quarterly basis.Image Source: Zacks Investment ResearchAdvanced Micro Devices’ Gaming segment also has recovered nicely, with revenue of $843 million in the above-mentioned period soaring 50% year-over-year.Both stocks have delivered somewhat disappointing performances in 2026 so far, as shown below. But over the past year, the performance disparity has been massive, with AMD shares massively outperforming relative to META, as shown in the chart below the YTD chart.Image Source: Zacks Investment ResearchThe performance disparity between the two can likely be explained by the fact that AMD is a direct beneficiary of the AI buildout, whereas META’s ever-rising CapEx has brought momentum to a halt.Putting Everything TogetherAdvanced Micro Devices AMD and Meta Platforms META find themselves dominating headlines again thanks to AI-related news, with the pair deepening an already-existing relationship to support META’s broader AI buildout. AMD shares have seen a strong reaction to the news as a direct beneficiary, whereas META looks to reap gains in a longer-timeframe as its AI goals hopefully come to fruition.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks