Meta’s multi-year deal strengthens long-term case for AMD, says Rosenblatt

Rosenblatt views the expanded partnership with Meta (META) as very positive for AMD‘s (AMD) Instinct GPU and EPYC CPU families. This multi-year, multi-billion-dollar agreement solidifies AMD’s architecture scaling to high volume production, the firm argues. AMD’s chiplet architecture allows flexibility to adjust to various Meta workloads. Reminiscent of Ambarella’s algorithm first CV architecture. The flexibility avoids costly ground up ASIC designs for each or a few workloads. Rosenblatt believes the AMD Bears will point to circular financing or pay-to-play, but it sees the warrant offer as confirming a long-term commitment to AMD’s product roadmap. The firm expects Buy-rated AMD will have another multi-year, multi-billion-dollar agreement announced in coming months.