Meta (META.US) and NVIDIA Corporation (NVDA.US) have reached a "trillion-level" chip collaboration, aiming to challenge x86 dominance and ignite pre-market trading.

After experiencing fluctuations in the previous trading day, the star tech stocks in the US stock market partially rebounded in pre-market trading on Wednesday, with market sentiment significantly boosted by industry giants teaming up and expanding capital expenditures. Today, the focus of the market is mainly on the leading companies in the artificial intelligence field. As it was reported that NVIDIA Corporation and Meta Platforms have reached a new supply agreement for next-generation computing chips, the pre-market stock prices of both companies rose, leading to an overall increase in the semiconductor sector. It is understood that social media giant Meta Platforms and semiconductor leader NVIDIA Corporation officially announced a multi-year deep strategic cooperation agreement on Tuesday local time. According to official statements released by the two companies, Meta will deploy millions of NVIDIA Corporation high-performance AI chips through its proprietary physical data centers and cloud infrastructure in the coming years. This procurement includes the market-leading Blackwell architecture GPUs and the highly anticipated next-generation Rubin architecture GPUs. More strategically, Meta announced that it will become the first large-scale independent customer to deploy NVIDIA Corporation's Grace CPUs and plans to introduce the more powerful Vera series processors in 2027. This decision not only signifies Meta's formal transition of its core computing architecture to the Arm ecosystem but also challenges the traditional x86 architecture's monopoly in the data center field. The core of this cooperation goes far beyond simple hardware procurement. The engineering teams of both companies have reached a deep co-design agreement to optimize the underlying software and hardware integration for Meta's next-generation large-scale language models, especially for the successor of Llama 4, codenamed "Avocado." Meta's CEO Mark Zuckerberg stated that this long-term investment is a key cornerstone in realizing the vision of providing "personal superintelligence" to global users. Meanwhile, Meta will fully adopt NVIDIA Corporation's Spectrum-X Ethernet network platform and plans to use NVIDIA Corporation's confidential computing technology in its applications like WhatsApp to pursue extreme AI performance while meeting increasingly stringent global data security and user privacy standards. Trillion-dollar orders shatter doubts about "self-developed chips": NVIDIA Corporation's full-stack layout puts pressure on competitors in pre-market trading In the capital market, this heavyweight news triggered an immediate chain reaction. NVIDIA Corporation's stock price performed strongly in after-hours trading, with the market generally believing that this large-scale order completely shattered doubts about major customers reducing external procurement due to self-developed chips. Wall Street analysts pointed out that by bundling Grace CPUs, Rubin GPUs, and Spectrum-X Network-1 Technologies, Inc. to Meta, NVIDIA Corporation has successfully transitioned from a mere component supplier to a definer of full-stack AI infrastructure. For Meta, although the massive capital expenditure has drawn attention to its profit pressure, the long-term locking of computing power supply is seen as a defensive weapon against competitors like Alphabet Inc. Class C and Microsoft Corporation, greatly enhancing investor confidence in its AI commercialization prospects. However, the completion of this cooperation agreement also foreshadows a drastic reshuffling of industry competition. For traditional chip giants like Intel Corporation and AMD, Meta's significant tilt towards Arm architecture CPUs is undoubtedly a serious warning signal, implying a structural shift in the power structure of the large-scale data center market. In the GPU market and competition with NVIDIA Corporation, AMD (AMD.US) fell by 1.40% in pre-market trading on Wednesday; while Broadcom Inc. (AVGO.US), which produces application-specific integrated circuits (as an alternative to GPUs), also fell by 0.3%. At the same time, Arista Networks (ANET.US) faces direct competition with NVIDIA Corporation in networking products, leading to a 2.41% decline in its stock price in pre-market trading on Wednesday. However, after communicating with the Arista management team, Evercore ISI analyst Amit Daryanani suggested investors "buy on dips." He pointed out that the agreement reached between NVIDIA Corporation and Meta is "more of a reconfirmation of the previously announced cooperation between the two parties," and emphasized that this progress is unlikely to have a substantial impact on Arista's performance guidance released last week. Market dynamics show that although short-term stock price fluctuations exist, a comprehensive assessment combining long-term strategic positioning with core competitive landscape and business fundamentals is still necessary. Microsoft Corporation throws $50 billion bet on "Global South", tech giants' resilient capital expenditures prop up AI sector rebound At the same time, Microsoft Corporation (MSFT.US) announced a grand global strategy, planning to invest $50 billion in AI infrastructure in the "Global South" markets over the next decade. This massive fund will primarily be used to build the underlying infrastructure needed for artificial intelligence, including the construction of large-scale data centers, in-depth development of localized AI models, and extensive digital skills training programs. Microsoft Corporation's move aims to accelerate the penetration of its AI ecosystem globally through a dual output of capital and technology, especially in regions with tremendous growth potential such as Africa, Latin America, and Asia. Looking at the industry fundamentals, the extremely high investment resilience demonstrated by tech giants recently is a crucial foundation supporting the strength in stock prices. According to multiple authoritative analysis reports, head companies including Amazon.com, Inc., Alphabet, and Meta will continue to see high-speed growth in capital expenditures in the 2026 fiscal year, with hundreds of billions of dollars accelerating towards data center construction centered around NVIDIA Corporation GPUs. This sustained and highly certain demand effectively counters previous concerns about the "insufficient return on AI investment" in the market. Additionally, the semiconductor design software leader Cadence Design Systems (CDNS.US) releasing better-than-expected performance guidance played a pivotal role in setting the industry trend, with its nearly 5% pre-market increase injecting a strong booster into the Nasdaq 100 pre-selected index, leading to significant buying in previously undervalued star stocks primed for a rebound. In terms of macro environment and fund flows, the marginal easing of the Geo Group Inc political situation has provided a window of opportunity for the rebound of risk assets. With positive signals emerging from Russia-Ukraine talks, risk aversion in the market has subsided, and funds are beginning to flow back from safe-haven assets like gold and silver to higher-growth tech sectors. Although investors are still eagerly awaiting the release of the minutes from the upcoming Federal Reserve meeting, against the backdrop of relatively stable US employment and inflation data, market participants lean towards seeking excess returns in the tech sector. Particularly for NVIDIA Corporation, which will release its earnings report next week, several Wall Street major banks have raised their earnings per share expectations before the performance reporting, indicating a bullish consensus before earnings season, allowing tech stocks to demonstrate a strong attacking posture in the US stock market prior to the official opening.