Nvidia and Meta Stocks Rise on Expanded AI Infrastructure Partnership
Nvidia stock rose 1.6% in premarket trading on Wednesday, while Meta Platforms shares gained about 1% after the companies announced a multiyear strategic partnership focused on expanding Meta’s artificial intelligence infrastructure.
The agreement centers on scaling Meta’s hyperscale data centers for AI training and inference using Nvidia technology.
Meta to Deploy Millions of Nvidia GPUs
Under the partnership, Meta will deploy millions of Nvidia Blackwell and Rubin GPUs, along with Nvidia CPUs, across its data centers. The collaboration also includes integrating Nvidia’s Spectrum-X Ethernet switches into Meta’s network infrastructure.
Nvidia CEO Jensen Huang highlighted Meta’s ability to operate AI at massive scale, combining advanced research with industrial-grade infrastructure to support billions of users worldwide.
The deal marks the first large-scale rollout of Nvidia’s Grace-only CPUs. These processors are designed to deliver improved performance per watt in data center environments. The companies are also working on deploying Nvidia Vera CPUs, with broader implementation expected by 2027.
Privacy Enhancements and AI Integration
Meta has adopted Nvidia Confidential Computing technology for WhatsApp to enable advanced AI features while maintaining user privacy. The company plans to extend these privacy-focused AI tools across its broader product portfolio.
Analysts view the agreement as a positive development for Nvidia. RBC Capital Markets noted that the deal represents incremental growth opportunities for the chipmaker. The partnership could also benefit Arm Holdings.
However, analysts suggested that increased adoption of Nvidia’s standalone CPUs may create competitive pressure for AMD and Intel in the server CPU market.
AMD and Arista Shares Decline
Advanced Micro Devices stock fell 1.2% in premarket trading, while Arista Networks shares declined around 3%.
Despite this, analysts emphasized that overall server CPU demand remains strong. Demand continues to exceed supply, driven by growth in agentic AI systems, retrieval-augmented generation models, and other advanced AI applications.
As a result, the near-term impact on AMD and Intel earnings estimates is expected to be limited.
