Nvidia, Meta stocks rise after expanded AI infrastructure pact; AMD sinks

Investing.com -- Nvidia (NASDAQ: NVDA) stock rose 1.75% in after-hours trading Tuesday, while Meta Platforms (NASDAQ: META) shares gained 2% following the announcement of a multiyear strategic partnership to expand Meta’s AI infrastructure using Nvidia technology.

The collaboration will involve Meta building hyperscale data centers optimized for AI training and inference, deploying millions of Nvidia Blackwell and Rubin GPUs along with Nvidia CPUs. The partnership also includes integration of Nvidia’s Spectrum-X Ethernet switches into Meta’s network infrastructure.

"No one deploys AI at Meta’s scale — integrating frontier research with industrial-scale infrastructure to power the world’s largest personalization and recommendation systems for billions of users," said Jensen Huang, Nvidia’s founder and CEO.

The agreement represents the first large-scale deployment of Nvidia’s Grace-only CPUs, which are expected to deliver significant performance-per-watt improvements in Meta’s data centers. The companies are also collaborating on deploying Nvidia Vera CPUs, with potential large-scale implementation in 2027.

Meta has additionally adopted Nvidia Confidential Computing for WhatsApp to enable AI capabilities while protecting user privacy, with plans to expand these privacy-enhanced features across Meta’s portfolio.

Advanced Micro Devices (NASDAQ: AMD) stock fell 3% after hours following the announcement, as the expanded partnership potentially reduces opportunities for AMD to gain market share in Meta’s AI infrastructure. Arista Networks (NYSE: ANET) stock fell about 11%.

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