Chip designer Qualcomm Inc. (QCOM) announced late Wednesday that it has signed a multi-generation agreement to supply data center CPUs to Meta Platforms, Inc. (META).

Qualcomm's First-generation data center CPU - Dragonfly C1000, is set to enter production in the second half of 2028.

The financial terms of the deal were not disclosed.

Qualcomm shares rose 12.27 percent to $221.63 in the overnight trading on the Nasdaq, after ending Wednesday's regular session 3.29 percent lower.

Qualcomm said the CPU will power Meta's next-generation server fleet. The chip is designed for performance per watt and lower total cost of ownership at scale.

"We designed our data center CPU to deliver leading performance per core and a breakthrough in power efficiency for large scale data center deployments, and this multi-generation agreement with Meta is a significant validation of that approach," said Cristiano Amon, President and CEO, Qualcomm.

In overnight trading on the Nasdaq, shares of Meta were up 0.11 percent, changing hands at $558.31, after closing Wednesday's regular session 0.81 percent lower.

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