Yesterday, it was reported that Advanced Micro Devices (AMD) has expanded its collaboration with Meta Platforms. The companies struck an agreement under which:

→ Meta will purchase AMD equipment with a total capacity of 6 gigawatts for its AI infrastructure. Deliveries are scheduled to begin in the second half of 2026.

→ AMD’s portfolio could include around 160 million META shares, representing roughly 10% of the company.

The market interpreted the news as a signal that AMD is successfully establishing itself as the second major chip supplier to tech giants, challenging Nvidia’s monopoly (incidentally, the market leader is due to release its quarterly report today).

Following yesterday’s trading, AMD shares jumped more than 8%, closing near the highs on rising volume—a bullish sign. This partially offset the decline seen after the early-February earnings report, which was influenced by falling margins, supply chain issues, concerns over deliveries to China, and other factors.

Technical Analysis of AMD Shares

Analysis of AMD’s chart indicates that the ascending channel (shown in blue), which guided price growth throughout 2025, is losing relevance.

Currently, AMD’s shares are trapped between two gaps:

→ Support is provided by the bullish gap from 6 October, which includes the psychological $200 level, offering additional support for buyers.

→ Resistance comes from the bearish gap of 4 February, which aligns with the median of the descending channel (shown in red).

It is reasonable to suggest that yesterday’s positive news offset the earlier negative sentiment, and in the short term, AMD shares may stabilise between the areas of the identified gaps.

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