Why Is AMD (AMD) Stock Rocketing Higher Today

Why Is AMD (AMD) Stock Rocketing Higher Today

Jabin Bastian

Wed, February 25, 2026 at 6:47 AM GMT+9 2 min read

In this article:

  •                                       StockStory Top Pick 
    

    AMD

    +8.77%

    META

    +0.32%

What Happened?

Shares of computer processor maker AMD (NASDAQ:AMD) jumped 8.5% in the afternoon session after the company secured a deal to sell up to US$60 billion in artificial intelligence chips to Meta Platforms over five years.

This landmark agreement, which also allows Meta to purchase as much as 10% of the chip firm, is one of the latest blockbuster deals in the artificial intelligence space, signaling massive investment by tech giants. The deal not only highlights the immense demand for specialized AI hardware but also contributed to a broader rebound in technology stocks, helping to ease recent investor fears about the disruptive impacts of AI.

The shares closed the day at $213.90, up 8.8% from previous close.

Is now the time to buy AMD? Access our full analysis report here, it’s free.

What Is The Market Telling Us

AMD’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 15 days ago when the stock gained 3.7% on the news that investor optimism about its position in the artificial intelligence (AI) market continued, building on gains from a recent rally. The move extended a surge from the previous trading session when the stock jumped on the growing realization that major tech companies would need AMD as a “second source” to meet the high demand for AI chips. This rally also represented a rebound for the stock, which had tumbled after its latest earnings report despite the results beating estimates. That report highlighted strong fundamentals, with the company’s data center segment growing 32% over the previous year, driven by strong demand for its EPYC processors and Instinct accelerators. The positive move also occurred amid a broader rally in the technology sector.

AMD is down 4.2% since the beginning of the year, and at $213.99 per share, it is trading 19% below its 52-week high of $264.33 from October 2025. Investors who bought $1,000 worth of AMD’s shares 5 years ago would now be looking at an investment worth $2,461.

While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report, it’s free.

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