After Nvidia announced a multi-year agreement to supply millions of chips to Meta Platforms, Arista Networks, Inc. shares fell 2.8% in pre-market trading.

This market reaction highlights the competitive landscape between data center network equipment suppliers and AI chip giants. Transaction details show that Nvidia will continue to supply Meta with a large number of high-performance computing chips, a move that may further consolidate its dominant position in the AI hardware sector. Analysts point out that the trend of major tech companies directly procuring core hardware could pose potential pressure on the business growth of network solution providers such as Arista Networks.