Nvidia and Meta shares climbed Tuesday after the companies announced an expanded multiyear strategic partnership to build advanced AI infrastructure. Nvidia's stock rose 1.75% in after-hours trading while Meta gained 2%, as the collaboration will see Meta deploy millions of Nvidia Blackwell and Rubin GPUs across hyperscale data centers optimized for AI training and inference.

The partnership marks Meta's first large-scale deployment of Nvidia's Grace-only CPUs, which promise significant performance-per-watt improvements. The companies will also integrate Nvidia's Spectrum-X Ethernet switches into Meta's network infrastructure and collaborate on deploying Vera CPUs with potential large-scale implementation in 2027. Meta has adopted Nvidia Confidential Computing for WhatsApp to enable AI capabilities while protecting user privacy.

Advanced Micro Devices stock fell 3% following the announcement, as the expanded Nvidia partnership potentially reduces opportunities for AMD to gain market share in Meta's AI infrastructure. Arista Networks shares dropped about 11% amid concerns about network hardware competition. The deal represents a significant win for Nvidia in the competitive AI chip market and strengthens its position against rivals like AMD in securing major cloud provider contracts.