--- title: "Meta and NVIDIA reach a \"trillion-dollar\" chip cooperation, aiming to challenge x86 hegemony and ignite pre-market trading" type: "News" locale: "en" url: "https://longbridge.com/en/news/276229154.md" description: "Meta has reached a supply agreement with NVIDIA for next-generation computing power chips, with both companies' stock prices rising in pre-market trading. Meta will deploy NVIDIA's high-performance AI chips on a large scale and will become the first independent customer to deploy NVIDIA's Grace CPU, planning to introduce the Vera series processors in 2027. This collaboration marks Meta's transition to the Arm architecture, challenging the monopoly of the traditional x86 architecture. The two parties will also engage in deep collaborative design to optimize Meta's next-generation large-scale language models" datetime: "2026-02-18T12:47:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276229154.md) - [en](https://longbridge.com/en/news/276229154.md) - [zh-HK](https://longbridge.com/zh-HK/news/276229154.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/276229154.md) | [繁體中文](https://longbridge.com/zh-HK/news/276229154.md) # Meta and NVIDIA reach a "trillion-dollar" chip cooperation, aiming to challenge x86 hegemony and ignite pre-market trading According to Zhitong Finance APP, after experiencing fluctuations in the previous trading day, U.S. tech stocks showed some recovery before the market opened on Wednesday. Market sentiment was significantly boosted by the collaboration between industry giants and the expansion of capital expenditures. Today's market focus is primarily on leading companies in the artificial intelligence sector, as it was reported that NVIDIA (NVDA.US) has reached a new supply agreement for next-generation computing chips with Meta Platforms (META.US). The pre-market stock prices of both companies rose in response, driving the semiconductor sector overall into positive territory. It is understood that social media giant Meta Platforms and semiconductor leader NVIDIA officially announced a multi-year deep strategic cooperation agreement on Tuesday local time. According to the official statement released by both companies, Meta will deploy millions of NVIDIA high-performance AI chips on a large scale through its own physical data centers and cloud infrastructure over the next few years. This procurement covers the currently market-leading Blackwell architecture GPUs as well as the highly anticipated next-generation Rubin architecture GPUs. More strategically significant is that Meta announced it will become the first large-scale independent customer to deploy NVIDIA's Grace CPUs, planning to introduce the more powerful Vera series processors by 2027. This decision not only marks Meta's formal transition of its core computing architecture to the Arm camp but also profoundly challenges the monopoly position of the traditional x86 architecture in the data center field. The core depth of this cooperation goes far beyond a simple hardware procurement model. The engineering teams of both companies have reached a deep co-design agreement aimed at optimizing the underlying software and hardware integration for Meta's next-generation large-scale language model, particularly the successor to Llama 4, codenamed "Avocado." Meta CEO Mark Zuckerberg stated that this long-term investment is a key cornerstone in realizing the vision of "providing personal superintelligence to global users." At the same time, Meta will fully adopt NVIDIA's Spectrum-X Ethernet network platform and plans to apply NVIDIA's confidential computing technology in its applications such as WhatsApp, in pursuit of extreme AI performance while meeting increasingly stringent global data security and user privacy standards. ## Trillion-dollar order shatters doubts about "self-developed chips": NVIDIA's full-stack layout puts pressure on competitors before the market opens In the capital markets, this heavyweight news triggered an immediate chain reaction. NVIDIA's stock performed strongly in after-hours trading, with the market generally believing that this ultra-large order completely dispelled doubts about major customers reducing external procurement due to self-developed chips. Wall Street analysts pointed out that by packaging Grace CPUs, Rubin GPUs, and Spectrum-X network technology for Meta, NVIDIA has successfully transformed from a simple component supplier to a definitional player in full-stack AI infrastructure For Meta, despite the massive capital expenditures drawing market attention to its profit pressures, the long-term locked supply of computing power is seen as a defensive tool against competition from Google and Microsoft, greatly enhancing investor confidence in its AI commercialization prospects. However, the achievement of this cooperation agreement also signals a dramatic reshuffling of the competitive landscape in the industry. For traditional chip giants like Intel and AMD, Meta's large-scale shift towards Arm architecture CPUs is undoubtedly a severe warning signal, indicating a structural shift in the power dynamics of the hyperscale data center market. Among them, AMD (AMD.US), which competes with NVIDIA in the GPU market, fell 1.40% in pre-market trading on Wednesday; meanwhile, Broadcom (AVGO.US), which produces application-specific integrated circuits (as a GPU alternative), also dropped 0.3%. At the same time, Arista Networks (ANET.US), whose switch products directly compete with NVIDIA, saw its stock price decline by 2.41% in pre-market trading on Wednesday. However, Evercore ISI analyst Amit Daryanani, after communicating with Arista's management team, advised investors to "buy on dips." He pointed out that the agreement between NVIDIA and Meta is "more of a reaffirmation of their previously announced collaboration" and emphasized that this development is unlikely to have a substantial impact on Arista's earnings guidance released last week. Market dynamics indicate that while there may be short-term stock price fluctuations, the core competitive landscape and business fundamentals still need to be assessed in conjunction with long-term strategic layouts. ## Microsoft Bets $50 Billion on the "Global South," Tech Giants' Capital Expenditure Resilience Supports AI Sector Rebound Meanwhile, Microsoft (MSFT.US) announced an ambitious global strategy, planning to invest $50 billion in AI infrastructure in "Global South" markets over the next decade. This substantial funding will primarily be used to build the underlying infrastructure required for artificial intelligence, including the construction of large-scale data centers, deep development of localized AI models, and extensive digital skills training programs. Microsoft's move aims to accelerate the penetration of its AI ecosystem globally through dual outputs of capital and technology, particularly in regions with significant growth potential such as Africa, Latin America, and Asia. From an industry fundamentals perspective, the high investment resilience recently exhibited by tech giants is an important foundation supporting the strengthening of stock prices. According to multiple authoritative analysis reports, leading companies including Amazon, Alphabet, and Meta are expected to maintain rapid growth in capital expenditures in the fiscal year 2026, with hundreds of billions of dollars accelerating towards data center construction centered around NVIDIA GPUs. This sustained and highly certain demand effectively hedges against previous market concerns about "insufficient returns on AI investments." Additionally, the unexpectedly strong earnings guidance released by semiconductor design software leader Cadence Design Systems (CDNS.US) has acted as a bellwether for the industry, with its nearly 5% pre-market gain injecting a boost into the entire Nasdaq 100 pre-selected index, leading to significant buybacks for some previously undervalued star stocks that had been oversold In terms of the macro environment and capital flows, the marginal easing of geopolitical tensions has also provided a window for the rebound of risk assets. With positive signals emerging from the Russia-U.S.-Ukraine negotiations, market risk aversion has somewhat diminished, and funds have begun to flow back from safe-haven assets like gold and silver to higher-growth technology sectors. Although investors are still holding their breath for the upcoming Federal Reserve meeting minutes, in the context of relatively robust U.S. employment and inflation data, market participants are more inclined to seek excess returns in the technology sector. In particular, for NVIDIA, which is set to release its earnings report next week, several major Wall Street firms have raised their earnings per share expectations in pre-market trading. This bullish consensus of "performance anticipation" has led technology stocks to display a strong offensive posture even before the official opening of the U.S. stock market ### Related Stocks - [NVIDIA Corporation (NVDA.US)](https://longbridge.com/en/quote/NVDA.US.md) - [Meta Platforms, Inc. 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