AMD shares fell between 3% and 4% in after-hours trading following a major partnership announcement between Meta Platforms and Nvidia.
Meta will utilize millions of Nvidia’s next-generation GPUs and CPUs to build out its global AI infrastructure. This multiyear strategic collaboration positions Nvidia as the primary hardware provider for Meta’s extensive data center requirements.
The development marks a significant setback for AMD, which previously identified Meta as one of its largest AI customers. Investors signaled concerns that the deepened relationship reduces opportunities for AMD to capture market share within Meta’s ecosystem. The deal reinforces Nvidia's dominance and highlights the competitive challenges AMD faces in the high-growth AI chip sector.