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Shares of Nvidia and Meta Platforms moved higher in premarket trading on Wednesday after the companies announced a multiyear strategic partnership aimed at significantly expanding Meta’s artificial intelligence infrastructure using Nvidia’s advanced technologies.
Nvidia (NASDAQ: NVDA) stock rose 1.6% in premarket trade, while Meta Platforms (NASDAQ: META) gained around 1%, as investors welcomed the deepening collaboration between the two technology giants.
Under the agreement, Meta will build hyperscale data centers optimized for AI training and inference, deploying millions of Nvidia Blackwell and Rubin graphics processing units (GPUs), alongside Nvidia CPUs. The partnership also includes the integration of Nvidia’s Spectrum-X Ethernet switches into Meta’s network infrastructure, enhancing performance and scalability for AI workloads.
Notably, the deal marks the first large-scale deployment of Nvidia’s Grace-only CPUs, which are expected to deliver substantial improvements in performance per watt across Meta’s data centers. In addition, the companies are collaborating on the rollout of Nvidia’s upcoming Vera CPUs, with potential for large-scale adoption as early as 2027.
Meta has also adopted Nvidia Confidential Computing technology for WhatsApp, enabling the rollout of AI-driven features while safeguarding user privacy. The company plans to extend these privacy-focused AI capabilities across its broader platform ecosystem.
In contrast, shares of Advanced Micro Devices (NASDAQ: AMD) slipped 1.2% in premarket trading, while Arista Networks (NYSE: ANET) fell around 3%, reflecting some investor rotation within the AI and data center space.
Despite the weakness in those names, market analysts noted that overall server CPU demand remains robust, with demand continuing to significantly outpace supply. Growth is being fueled by emerging AI applications such as agentic AI systems, retrieval-augmented generation, and other compute-intensive workloads.
Overall, the Nvidia–Meta partnership underscores the accelerating investment cycle in AI infrastructure, reinforcing Nvidia’s central role in the global AI hardware ecosystem while highlighting sustained demand across the broader data center market.
