On August 4, Advanced Micro Devices rose 3.07% overnight, trading at $499.54/share, with turnover of $81.5245 million. The rally was primarily driven by the disclosure that AMD has entered performance-based warrant agreements with Meta and OpenAI involving up to 6GW of Instinct GPU deployment.

According to semiconductor research firm SemiAnalysis, AMD signed the agreements from late last year through early this year. The warrants vest in tranches as the two companies procure and deploy AMD Instinct GPUs, with AMD's stock price also required to surpass tiered targets up to $600. SemiAnalysis estimates that as AMD shares rose from approximately $200 at the start of the year to the current $500-600 range, Meta and OpenAI's GPU capital costs have declined significantly — from roughly $2.15/hour and $2.50/hour to approximately $1.60/hour and $1.75/hour respectively. If AMD's stock reaches $600-700, GPU capital costs would approach zero for both companies.

The announcement comes ahead of AMD's Q2 earnings report due after market close on August 4, with consensus estimates projecting revenue of approximately $11.3 billion, representing roughly 52% year-over-year growth, and EPS of $1.61.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)