Nvidia Sheds $260 Billion in Market Value Despite Record $68B Quarter as AI Optimism Cools

Advanced Micro Devices and Meta Platforms announced an expanded multi-year strategic partnership on February 24, with Meta agreeing to deploy up to 6 gigawatts of AMD Instinct GPUs across its AI infrastructure. The deal, valued at up to $60 billion over five years, represents one of the largest AI chip procurement agreements ever disclosed and positions AMD as a credible alternative to Nvidia in the hyperscale AI market.

The deal structure includes an unusual equity component: AMD issued Meta performance-based warrants to acquire up to 160 million AMD shares — roughly 10% of the company — with those warrants vesting as hardware is delivered. The first tranche is expected in late 2026 when the initial gigawatt of capacity goes online, powered by AMD's MI450 GPUs paired with sixth-generation EPYC CPUs and built on the AMD Helios rack-scale architecture. AMD stock surged more than 9% on the announcement.

The timing of the deal carried significant strategic weight. The announcement came days after Meta had separately disclosed an expanded Nvidia GPU deployment, underscoring that the largest AI buyers intend to maintain diversified chip supply chains rather than depend on a single vendor. For AMD, securing Meta as a flagship customer at this scale validates years of investment in its Instinct GPU roadmap and ROCm software ecosystem, and meaningfully strengthens its position in the intensifying AI infrastructure market.

Eos Energy Enterprises (EOSE) saw its stock collapse between 31% and 39% on February 26 after the battery storage company reported fourth-quarter 2025 revenue of $57.99 million — significantly short of the $92.82 million analyst consensus — despite the figure representing a more than 700% increase over the same period a year earlier. Full-year 2025 revenue came in at $114.2 million, also below expectations. The Q4 non-GAAP loss per share of $0.72 missed estimates by $0.48, a gap of more than 200%.

Investors reacted most sharply to the company's 2026 guidance, which called for full-year sales of $300 million to $400 million, well below the $479 million consensus analysts had projected. The wide gap between the company's own outlook and market expectations raised questions about the pace of customer adoption and the company's ability to scale production to meet contractual commitments. The stock opened near $7.64 after closing the prior session at $11.13.

There were some stabilizing data points in the release. Management formally stated that substantial doubt regarding the company's ability to continue as a going concern no longer exists — a significant reassurance given concerns that had previously circulated. The dramatic year-over-year revenue increase, while below estimates, does reflect genuine commercial traction in the long-duration energy storage market. Nonetheless, the magnitude of the estimate miss and conservative forward guidance drove one of the sharpest single-session declines for the stock in recent memory.