AMD Takes $1 Billion Hit From OpenAI and Meta AI Chip Deals

What happened: Advanced Micro Devices (AMD) recorded a $1.1 billion noncash charge in the third quarter tied to stock warrants granted to OpenAI and Meta Platforms (META) under chip-supply agreements. Key numbers: $1.1 billion noncash Why it matters: CFO Jean Hu attributed the charge mainly to AMD's higher share price and revised estimates of whether warrant conditions will be met, and expects quarterly fair-value adjustments to increase as AMD ships MI450-series processors. The noncash changes will not affect non-GAAP earnings or free cash flow, though exercise could dilute shareholders. Market: +3.6% today ($483.90), +116.5% YTD, 1.6x vol — as of 12:45 UTC Verified: Q3_2026 (Nov 3) EPS $2.09 vs $1.94 est, +7.5% beat; next print ~Feb 2 Coverage: 4 outlets in 24h

Advanced Micro Devices (AMD) recorded a $1.1 billion noncash charge in the third quarter tied to stock warrants granted to OpenAI and Meta Platforms (META) under chip-supply agreements.

CFO Jean Hu attributed the charge mainly to AMD's higher share price and revised estimates of whether warrant conditions will be met, and expects quarterly fair-value adjustments to increase as AMD ships MI450-series processors. The noncash changes will not affect non-GAAP earnings or free cash flow, though exercise could dilute shareholders. Market: +3.6% today ($483.90), +116.5% YTD, 1.6x vol — as of 12:45 UTC Verified: Q3_2026 (Nov 3) EPS $2.09 vs $1.94 est, +7.5% beat; next print ~Feb 2