AMD reported a $1.1 billion noncash charge in the third quarter, mostly tied to stock warrants issued under its AI chip supply agreements with OpenAI and Meta. CFO Jean Hu said the charge reflects shifts in AMD's stock price and the projected likelihood that clients will meet the warrant terms, and cash flow was unaffected. Including the charge, AMD reported earnings of $1.46 per share under generally accepted accounting standards. The company began recognizing the impact as it shipped MI450-series GPUs under client agreements. If performance and other contractual goals are met, the warrants let OpenAI and Meta obtain sizeable stock shares, creating potential dilution for existing shareholders.
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