Advanced Micro Devices (AMD  ) provided the "receipts" needed to validate its AI roadmap, sparking a rally that a Rosenblatt analyst believes offers significant "upside" for the chipmaker after its deal with Meta Platforms Inc. (META  ), announced on Tuesday. Strategic Validation And 'Receipts'

The partnership centers on the custom-tuned AMD chips, designed to power Meta's "personal superintelligence" initiative. Wall Street experts are hailing the move as a major shift from AI model training to large-scale deployment.

"This is receipts," said Daniel Newman, CEO of The Futurum Group, during a CNBC interview. "This is AMD providing receipts right now that they are winning inference workloads from one of the best implementers of AI on the planet in Meta."

Newman emphasized that as the industry enters the inference phase, AMD is no longer just a participant but is "helping set the pace for how the modern data center gets built."

Massive Upside And Roadmap Security

Wall Street's reaction was swiftly bullish. Rosenblatt Securities analyst Kevin Cassidy reiterated a "Buy" rating with a $300 price target, representing a nearly 40% upside.

Cassidy noted that the "multi-billion dollar agreement solidifies AMD's architecture scaling to high-volume production. The deal includes a unique performance-based warrant structure, allowing Meta to purchase up to 160 million AMD shares.

While some investors fear dilution, Rosenblatt views the warrants as "confirming a long-term commitment to AMD's product roadmap," effectively silencing "bears" who doubted AMD's ability to challenge Nvidia's dominance.

Market Reaction And Trading Strategy

Despite the 8% surge erasing some of AMD's year-to-date losses, some technical analysts suggest patience. Tim Biggam of TradingBlock told Schwab Network that while the news "will put a floor in AMD stock," he warned against chasing the rally.

Biggam identified the $195 level as key support, suggesting that the elevated implied volatility makes out-of-the-money put spreads a more attractive play than buying at the peak.

With shipments slated for the second half of 2026, the deal marks a fundamental alignment between two tech giants, securing AMD's seat at the head of the AI infrastructure table.

AMD Down Over 4% In 2026

Shares of AMD have dropped by 4.31% year-to-date, while the Nasdaq 100 index has declined by 0.91% in the same period. The stock was 30.90% higher over the last six months and 105.69% over the year. On Tuesday, the stock closed 8.77% higher at $213.84 apiece.

Benzinga's Edge Stock Rankings indicate that AMD maintains a weaker price trend over the short and medium terms but a strong trend in the long term, with a solid quality ranking.