AMD's stock is surging, here's why

Facebook, soon to be Meta, has chosen AMD's processors

AMD is on pace to close at an all-time high with the biggest percentage increase since July of 2020 thanks to a deal with Facebook.

Ticker Security Last Change Change %
AMD ADVANCED MICRO DEVICES, INC. 144.01 -6.67 -4.43%

The chipmaker announced that the social media giant, which will transform to its new name Meta in December, has chosen its processors, "EPYC CPUs for its data center," according to the company. 

FACEBOOK UNVEILS NEW NAME AS COMPANY DIVES DEEP INTO METAVERSE

Ticker Security Last Change Change %
FB META PLATFORMS, INC. 306.84 -3.55 -1.14%

"We are in a high-performance computing megacycle that is driving demand for more compute to power the services and devices that impact every aspect of our daily lives," said Dr. Lisa Su, president and CEO, AMD. "We are building significant momentum in the data center with our leadership product portfolio, including Meta’s adoption of AMD EPYC to power their infrastructure and the buildout of Frontier, the first U.S. exascale supercomputer which will be powered by EPYC and AMD Instinct processors."

Lisa Su, president and CEO of Advanced Micro Devices, attends the opening bell at Nasdaq in New York on May 1, 2019. (AP Photo/Mark Lennihan, File)

So far this year AMD shares have gained over 62%. 

Last month, Facebook CEO Mark Zuckerberg announced the details of the company's rebrand. 

"Today, we're seen as a social media company. But in our DNA, we're a company that builds technology to connect people, and the metaverse is the next frontier, just like social networking was when we got started," Facebook CEO Mark Zuckerberg said at Thursday's Connect 2021 event. "From now on, we're going to be metaverse first, not Facebook first. That means that over time, you won't need to use Facebook to use our other services as our new brand starts showing up in our products. I hope that people come to know the Meta brand and the future that we stand for." 

The move comes as whistleblower Frances Haugen released documents detailing unfavorable working policies at the social media giant. FOX Business was among the media companies that viewed documents provided by Haugen. 

CORRECTED: YTD share price gains.