Advanced Micro Devices (NASDAQ:AMD) saw its stock jump 8.77% to $213.84 after securing a major multiyear AI chip and systems deal with Meta Platforms (NASDAQ:META). This deal will reshape AMD’s data center AI share versus competitor Nvidia. Trading volume soared to 79.8 million shares, well above the three-month average of 36.2 million.

The S&P 500 rose 0.77% to close at 6,890, while the Nasdaq Composite climbed 1.04% to finish at 22,864. Nvidia closed at $192.85 (+0.68%) and Intel ended at $46.12 (+5.71%) as investors reevaluated AI infrastructure demand within the semiconductor industry.

As part of the agreement, Meta will acquire 6 gigawatts of GPUs from AMD to support AI infrastructure for its next generation. AMD will also grant Meta a warrant for the acquisition of up to 160 million AMD shares, a 10% stake in the company. This deal strengthens AMD’s position against Nvidia in the competitive market.

Investors should note that the Motley Fool Stock Advisor team did not include Advanced Micro Devices among its top 10 stock picks. The team’s previous recommendations, such as Nvidia in 2005, have yielded significant returns. Stock Advisor’s total average return is 889%, outperforming the S&P 500’s 192%.

Howard Smith, who has positions in Intel and Nvidia, highlights the potential impact of the Meta deal on AMD’s stock price. The Motley Fool, which holds positions in AMD, Intel, and Nvidia, urges investors to consider the latest top 10 stock list for potential market-beating returns.

Read more at Nasdaq: Stock Market Today, Feb. 24: Advanced Micro Devices Surges After Meta Strikes Multiyear AI Chip Supply Deal