TLDR
- Nvidia plans to build AI supercomputers in the US, producing up to $500 billion in AI infrastructure with partners over four years
- Nvidia shares rose 0.3% to $111.06 in Tuesday premarket despite falling 0.2% in Monday’s session
- Blackwell GPUs are already in production at TSMC factories in Arizona, with Foxconn and Wistron partnerships for AI supercomputer factories in Texas
- Trump administration opened a new semiconductor import investigation under Section 232 that could result in tariffs
- Trump praised Nvidia’s US investment plans, stating “The higher the tariff, the faster they come”
Nvidia stock ticked up 0.3% to $111.06 in Tuesday premarket trading despite a 0.2% dip in Monday’s session. The slight rise comes after two major developments: Nvidia’s announcement of massive US investment plans and a new Trump administration investigation into semiconductor imports.
The company revealed plans to build artificial-intelligence supercomputers entirely in the United States. This ambitious project aims to produce up to $500 billion in AI infrastructure with its partners over the next four years.
Nvidia stated its Blackwell graphics-processing units are already in production at Taiwan Semiconductor Manufacturing chip factories in Arizona. These advanced chips power the AI systems driving the current technology boom.
The company is also working with Foxconn and Wistron to build AI supercomputer factories in Houston and Dallas, respectively. These partnerships expand Nvidia’s US manufacturing footprint significantly.
Trump Administration Response
The announcement received praise from President Trump, though Nvidia didn’t provide specific details about final production volumes or capacity goals.
“They’re coming here in the biggest way, with hundreds of billions of dollars, not like millions of dollars, hundreds of billions of dollars and I’m honored by it,” Trump said Monday in the Oval Office.
Trump also suggested his tariff policies were encouraging this type of domestic investment. “The higher the tariff, the faster they come,” he said, referring to manufacturers and companies moving production to the US.
The warm reception comes despite the Trump administration launching a new investigation that could potentially affect chip makers. The probe will examine imports of semiconductors on national security grounds.
New Semiconductor Investigation
According to a notice posted Monday to the Federal Register, the investigation will be carried out under Section 232 of the Trade Expansion Act of 1962. This law gives the president authority to impose tariffs on imports deemed essential for national security.
The filing is set to be published on Wednesday, formalizing the start of what could be a far-reaching review of the chip industry. The investigation’s findings could reshape the semiconductor landscape if they lead to new tariffs or restrictions.
The news appears to have had limited immediate impact on chip stocks. Along with Nvidia’s premarket rise, Advanced Micro Devices shares increased 0.41% and Broadcom was up 0.3% in premarket trading.
Domestic Production Timeline
Nvidia’s US manufacturing plans are moving quickly. The company aims to mass-produce AI supercomputers built entirely in the United States by 2026, according to their announcement.
As the dominant player in AI chips, Nvidia’s shift toward US production represents a major change in its manufacturing strategy. The company has historically relied heavily on overseas production.
The move aligns with growing political pressure from both political parties to increase domestic chip production. The CHIPS Act passed in 2022 provided billions in incentives for such investments.
Nvidia hasn’t specified if its US manufacturing plans will utilize any CHIPS Act funding. The company may qualify for various tax incentives and grants under the program.
The initiative comes as demand for AI chips continues to surge. Nvidia has struggled to keep up with orders for its advanced chips as tech companies race to build out AI capabilities.
Building production capacity in the US could help secure supply chains against geopolitical disruptions. This has become a greater concern as tensions with China and other manufacturing hubs have increased.
Investors appear cautiously optimistic about these developments. The stock’s modest rise suggests the market sees potential benefits from both increased US production and possible protection from import tariffs.
The company’s plan to produce “half a trillion dollars worth of AI infrastructure” represents one of the largest domestic manufacturing commitments in recent memory. This scale of investment could have ripple effects throughout the tech supply chain.
It remains unclear how the Section 232 investigation might ultimately impact Nvidia and other chip makers. Previous investigations under this authority have led to varied outcomes, from minimal changes to substantial tariffs.
For now, Nvidia continues to lead the AI chip race with its GPUs remaining the preferred choice for training artificial-intelligence models. This latest move could further strengthen its competitive position in an increasingly important industry.
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