Advanced Micro Devices (AMD) has entered into a major $250 million strategic partnership with enterprise cloud software company Nutanix. The deal, announced on February 25, 2026, is designed to accelerate the development of an open, full-stack AI infrastructure platform specifically for agentic AI applications.
The investment is structured in two parts. First, AMD will purchase $150 million worth of Nutanix (NTNX) stock at a fixed price of $36.26 per share, a direct equity investment signaling strong confidence. Second, AMD will commit an additional $100 million to fund joint engineering and go-to-market collaboration between the two companies.
The news, coupled with Nutanix's better-than-expected Q4 earnings report, sent NTNX stock soaring. The share price initially surged over 20% in premarket trading on Thursday, February 26, before settling to close the regular session up 3.38% on heavy volume of over 5.4 million shares.
Analysts reacted positively to the announcement. KeyBanc analyst Brandon Nispel maintained an Overweight rating on NTNX with a $65 price target, suggesting the AMD investment "likely sparks renewed enthusiasm." RBC Capital Markets analyst Matthew Hedberg noted the partnership "likely increases Nutanix’s AI relevance" and could raise the company's profile from a mergers and acquisitions perspective.
This partnership is part of a broader wave of major AI chip deals. Earlier in the same week, AMD announced a long-term agreement with Meta Platforms, which included a warrant grant potentially giving Meta a 10% stake in AMD. Separately, Meta also signed multi-billion-dollar, multi-year chip supply deals with both Nvidia and Google for its Tensor Processing Units (TPUs), highlighting the intense competition and investment in AI infrastructure.
