--- title: "AMD and Meta \"10% equity for $100 billion order,\" Goldman Sachs: Need to see actual deployment to be more confident" description: "Goldman Sachs believes that the core logic of this transaction is: Meta exchanged potential equity for AMD's deeply customized services and long-term supply commitments, while AMD exchanged future equ" type: "news" locale: "en" url: "https://longbridge.com/en/news/276809695.md" published_at: "2026-02-25T01:12:56.000Z" --- # AMD and Meta "10% equity for $100 billion order," Goldman Sachs: Need to see actual deployment to be more confident > Goldman Sachs believes that the core logic of this transaction is: Meta exchanged potential equity for AMD's deeply customized services and long-term supply commitments, while AMD exchanged future equity dilution for guaranteed orders and market share endorsement from top-tier hyperscale cloud providers. This move significantly enhances AMD's market position, but due to the need to observe actual deployment progress and high operating expenses, it currently maintains a "neutral" rating Regarding AMD and Meta's "10% equity for 100 billion orders," Goldman Sachs stated that it is not willing to give a more positive rating until it sees the actual deployment progress of Meta and OpenAI. On February 24, an article from Wall Street Insight pointed out that AMD and Meta announced a five-year strategic partnership, where Meta will deploy 6GW of AMD GPUs. In exchange, AMD will provide up to 160 million shares (approximately 10% equity) of performance-based warrants. On February 25, according to news from the Wind Trading Desk, Goldman Sachs noted in its latest research report that **this cooperation significantly enhances AMD's position in the accelerator market**, and also indicates that AMD has made important progress in competing with giants like NVIDIA. However, the firm emphasized that **it will only take a more positive stance on AMD after seeing the actual deployment timeline of Meta and OpenAI**, maintaining a "neutral" rating on AMD, with a target price raised to $240. ## Strategic Cooperation Details: Equity for Orders Goldman Sachs stated that the core logic of this transaction is: **Meta exchanged potential equity for AMD's deeply customized services and long-term supply commitments, while AMD exchanged future equity dilution for guaranteed orders and market share endorsement from a top-tier hyperscale cloud vendor.** Goldman Sachs indicated that, in terms of financial structure, this cooperation is very similar to the OpenAI deal announced in October 2025. **The transaction includes performance-based warrants for up to 160 million shares of AMD common stock (approximately 10% ownership). These warrants will vest in batches as deployment is completed and stock price thresholds are met (the final batch will vest when 6GW is deployed and the stock price reaches $600).** Goldman Sachs pointed out that as part of the agreement, AMD is designing a semi-custom MI450 GPU specifically tailored for Meta workloads. **AMD expects initial shipments to begin in the second half of 2026 and anticipates that this cooperation will increase non-GAAP earnings per share (EPS).** Goldman Sachs believes that **this announcement is a significant positive for AMD, as it provides greater certainty regarding the company's market share position among Tier-1 hyperscale cloud service providers.** Due to equity ownership and product customization, Meta has a strong incentive to use AMD's products. At the same time, Goldman Sachs noted that **this announcement has a slight negative impact on NVIDIA and Broadcom due to increased competitive intensity from key customers.** ## Maintaining "Neutral" Rating: Waiting for Actual Deployment Despite the broad prospects of the cooperation, Goldman Sachs currently maintains a "neutral" rating on AMD. Goldman Sachs pointed out that **AMD's significant risk exposure to OpenAI and high operating expenses (OpEx) are the main reasons for maintaining a neutral rating.** Goldman Sachs stated that **if it can gain more confidence in the deployment timeline of Meta and OpenAI before 2027, it may consider taking a more constructive stance.** Based on the incremental contribution from Meta's strategic cooperation, Goldman Sachs has raised its non-GAAP EPS (excluding stock-based compensation, SBC) forecasts for AMD for 2027 and 2028 by approximately 16% and 17%, respectively. Specifically, the EPS forecast for 2027 has been raised from $10.00 to $11.55, and the EPS forecast for 2028 has been raised from $11.75 to $13.70. Goldman Sachs has increased AMD's 12-month target price from $210 to $240, based on a 28 times price-to-earnings ratio (down from the previous 30 times due to a decline in peer valuations) applied to a normalized EPS forecast of $8.50 (up from the previous $7.00) ### Related Stocks - [METW.US - Roundhill META WeeklyPay ETF](https://longbridge.com/en/quote/METW.US.md) - [SMH.US - VanEck Semiconductor ETF](https://longbridge.com/en/quote/SMH.US.md) - [VGT.US - VG Info Tech](https://longbridge.com/en/quote/VGT.US.md) - [SOXX.US - iShares Semiconductor ETF](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US - Direxion Semicon Bull 3X](https://longbridge.com/en/quote/SOXL.US.md) - [AMUU.US - Direxion Daily AMD Bull 2X Shares](https://longbridge.com/en/quote/AMUU.US.md) - [META.US - Meta Platforms](https://longbridge.com/en/quote/META.US.md) - [SOXQ.US - Invesco PHLX Semiconductor ETF](https://longbridge.com/en/quote/SOXQ.US.md) - [FBL.US - GraniteShares 2x Long META Daily ETF](https://longbridge.com/en/quote/FBL.US.md) - [AMDL.US - GraniteShares 2x Long AMD Daily ETF](https://longbridge.com/en/quote/AMDL.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Meta is planning stablecoin comeback in the second half of this year - Coindesk | Meta is planning stablecoin comeback in the second half of this year - Coindesk | [Link](https://longbridge.com/en/news/276759260.md) | | A Meta AI security researcher said an OpenClaw agent ran amok on her inbox | Meta AI researcher Summer Yu shared a cautionary tale about her OpenClaw AI agent, which mistakenly deleted her emails w | [Link](https://longbridge.com/en/news/276664570.md) | | Meta executive warned Facebook Messenger encryption plan was 'so irresponsible', shows court filing | Meta executives expressed concerns that the company's plan to implement end-to-end encryption on Facebook Messenger and | [Link](https://longbridge.com/en/news/276679490.md) | | Semiconductor Stock Surges on Expanded Meta Partnership | Advanced Micro Devices Inc (NASDAQ:AMD) has announced an expanded partnership with Meta Platforms (META), deploying up t | [Link](https://longbridge.com/en/news/276758819.md) | | Meta to continue blocking new political ads in final week of 2026 US midterm elections | Meta to continue blocking new political ads in final week of 2026 US midterm elections | [Link](https://longbridge.com/en/news/276356499.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.