Advanced Micro Devices (AMD) shares dropped 10% as Meta Platforms (META) plans to use Google’s AI chips instead. Meta will rent Google’s TPUs in 2027, impacting AMD’s revenue. Investors hoped Meta would choose AMD over Nvidia (NVDA) for AI chips, but the potential deal with Google changes the game. AMD faces challenges like higher HBM costs and supply chain constraints, affecting its margin and stock price. Despite risks, Wall Street analysts maintain a “Moderate Buy” rating on AMD, with a target price of $291, signaling a potential upside of over 45%.

Read more at Barchart: Should You Buy the Plunge in AMD Stock Today?