Nvidia stock dropped to $110.54, losing 0.35% just after the company announced its plan to spend $500 billion to move its AI chip and supercomputer production into the United States. The drop came as tech shares were on their way up due to the recent exemption announced by the Trump administration.
In its announcement, Nvidia mentioned that it is building and testing its Blackwell chips in Arizona and AI supercomputers in Texas, using over one million square feet of factory space. This is the first time that Nvidia will be producing its entire AI systems on American soil.
Nvidia kicks off full-scale chip and supercomputer production in the US
Nvidia has already started production of Blackwell AI chips at TSMC’s plants in Phoenix, Arizona. It is now working with Foxconn to build supercomputer factories in Houston and with Wistron in Dallas. Mass production in both Texas plants is expected to begin over the next 12 to 15 months, according to the company. To finish the job, Nvidia has enlisted the help of Amkor and SPIL to handle the packaging and testing of the chips in Arizona.
These companies are working together, building a lasting supply chain that can handle the complicated manufacturing process that is needed in the AI chip and supercomputer business. It will also include advanced steps like seemingly, packaging, and testing. In the next four years, the company has plans to build $500 billion worth of AI infrastructure in the United States with several partners, including TSMC, Foxconn, Wistron, Amkor, and SPIL. All five companies are increasing their collaboration with Nvidia, expanding operations, and locking in a stronger, domestic production line.
The new systems are not just random, as they are AI supercomputers meant to power a new kind of data center built just for artificial intelligence. Nvidia says they are AI factories, and said it expects dozens of gigawatt factories to be built in the United States in the coming years. The company also said this massive shift to domestic manufacturing will support hundreds of thousands of US jobs and help generate trillions of dollars in economic impact over time. These AI supercomputers, once operational, will run machine learning models at an insane scale, creating what Nvidia says is the foundation for a new AI economy.
“The engines of the world’s AI infrastructure are being built in the United States for the first time. Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain, and boosts our resiliency,” Nvidia founder and CEO Jensen Huang said. Despite the noise, Wall Street remained largely unaffected, with Nvidia shares dropping on the day. Overall, Nvidia slid, while others climbed.