Sector Spotlight: AMD Trumps Nvidia in Meta AI Deal
A major disruption shook the high-stakes AI sector today. AMD shares jumped significantly while Nvidia shares fell, following the announcement of a massive US$60 billion AI chip agreement between AMD and Meta (the parent company of Facebook). This five-year deal, which includes a provision for Meta to potentially acquire a 10% stake in AMD, underscores a strategic shift by tech giants to diversify their AI hardware suppliers away from a single dominant provider.