Advanced Micro Devices shares jump on up to $60 billion Meta chip deal

Advanced Micro Devices AMD.O shares climb 10.4% to $217.48 in premarket trading after announcing a deal to sell up to $60 bln in AI chips to Meta Platforms META.O over five years

Agreement includes AMD's flagship MI450 GPUs and custom CPUs, and gives Meta an option to purchase up to 10% of AMD through a warrant for 160 mln shares

This is the second major AI chip supply deal for AMD, following a similar pact with OpenAI last year that significantly boosted its stock price

YTD, AMD shares have fallen about 8.2%, underperforming the Nasdaq's .IXIC 2.6% fall

The avg rating of 57 analysts on the stock is "buy" and the median price target is $284.00, per LSEG data