Nvidia invest $500 billion at home

Nvidia is pivoting by bringing a significant chunk of its AI chip and supercomputer manufacturing to the US, partnering with TSMC, Foxconn, Wistron, Amkor, and SPIL. The company has committed over a hundred thousand square metres of space across Arizona and Texas, where production is expected to ramp up over the next 12 to 15 months.

Nvidia aims to build the infrastructure needed for the next wave of AI-driven data centres, what Nvidia calls "AI factories." Together with its ecosystem partners, Nvidia is planning to produce up to $500 billion worth of AI infrastructure in the US over the coming years.

By reducing reliance on overseas supply chains, Nvidia is insulating itself from tariff shocks and political friction. It also puts the company in a stronger position to win government and defence contracts, many of which favour US-based manufacturing. And by taking a more active role in its own supply chain, Nvidia gains better control over production quality, capacity, and turnaround times, key in a market where demand is running hot. Note that these initiatives were started under the Biden administration.

Long term, this move bolsters Nvidia's supply chain resilience and supports its broader AI ambitions. It sends a strong signal to investors: Nvidia isn't just riding the AI wave, it's building the hardware backbone for it, on its home turf, with political foresight and industrial scale.