Advanced Micro Devices, Inc.’s (NASDAQ:AMD) stock recently climbed above $600, taking the company’s market capitalization beyond $1 trillion and crossing a key threshold linked to its warrant agreement with Meta Platforms, Inc. (NASDAQ:META). However, some reports have incorrectly combined the META and OpenAI agreements into a 320-million-share giveaway. Meta and OpenAI each hold warrants for up to 160 million shares. The $600 level is required for Meta’s final tranche to vest, but reaching that price alone does not satisfy all the conditions. While some are spooked by the Meta deal, others are still asking whether the stock is a buy after nearly tripling in value. With CPU usage about to skyrocket over the next 3 years, we still see considerable upside.
The Deal, Precisely
According to AMD’s February 2026 SEC Filing, Meta’s warrant gives it the right to purchase up to 160 million AMD shares at $0.01 per share. Vesting depends on three conditions being met at the same time. These include GPU purchase milestones, with the first tranche becoming exercisable after 1 gigawatt is shipped and full vesting at 6 gigawatts purchased. It also requires rising AMD stock-price thresholds that reach $600 for the final tranche, along with unspecified technical and commercial conditions that AMD did not disclose in its public filing. AMD made it to Insider Monkey’s 12 High-Flying Stocks to Invest In. See where it ranks amongst the market’s top performers and which stocks rank ahead.
What It Means for Meta?
Reaching $600 satisfies the stock price condition for Meta’s final tranche, but it does not immediately unlock the full 160 million shares. The vesting process remains linked to the pace of Meta’s own deployment. Shipments only started ramping in the second half of 2026, while full vesting requires Meta to purchase the entire 6-gigawatt commitment, which is expected to unfold over multiple years rather than through a single delivery. AMD’s latest filing said no Meta or OpenAI warrant shares had vested as of June 27, with future vesting dependent on purchase, stock-price, and other contractual milestones
What It Means for AMD?
The potential dilution is meaningful but limited. Meta and OpenAI can receive up to 320 million shares combined, which would increase AMD’s current share count by roughly 20% if both warrants are fully exercised. CFO Jean Hu has argued that the arrangement will still be accretive to non-GAAP EPS after the warrants are included, because each gigawatt is expected to produce double-digit billions in revenue.
Crossing $600 is only a milestone, not the trigger for the full payout. The shares vest gradually as Meta actually deploys GPUs and AMD receives payment. Rather than through a lump-sum payout based solely on the stock price.
According to our database, the number of hedge funds holding Meta fell from 262 at the end of Q1 2026 to 254 at the end of Q2 2026, representing a small pullback within an already wide institutional base. Short interest remained low at just 1.31% of float as of August 31, 2026.
Unlike Meta, AMD saw a sharp rise in hedge fund ownership, with the number of funds rising from 134 at the end of Q1 2026 to 164 at the end of Q2 2026. At the same time, short interest remained at 2.57% of float as of August 31, 2026, pointing to limited bearish positioning even after the stock climbed past $600. Together, the two figures point to strong institutional confidence in AMD’s AI diversification story.
AMD’s valuation at a 2027 earnings multiple of 40x looks fair considering the fact that Meta’s deal triggers only when significant revenue has already arrived. I don’t see that as a major concern, since the dilution spread over the period that revenue comes in is hardly something to worry about.
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