Nvidia (NVDA) Stock: Jensen Huang Goes All-In on Taiwan With $150B Investment

TLDR

• Nvidia CEO Jensen Huang announced plans to increase annual spending in Taiwan from $100 billion to $150 billion.
• Nvidia will build a new campus in Taipei called Constellation, set to open in 2030 with capacity for 4,000 employees.
• Taiwan’s Taiex index hit a record close, rising 1.7%, with TSMC up 1.3% and MediaTek surging 8.8%.
• Revenue from mainland China and Hong Kong halved in Nvidia’s latest quarter, while Taiwan revenue jumped over 50%.
• Chinese chip stocks fell sharply, with Cambricon down 5% and Hygon dropping 7% on the day.

Nvidia CEO Jensen Huang used an employee event in Taipei on Wednesday to make one of the company’s biggest commitments yet to Taiwan — a plan to increase annual spending with Taiwanese suppliers from $100 billion to $150 billion.

The announcement came at the launch of a new Nvidia campus in Taiwan. Huang said the company was already spending around $100 billion a year in the region — up from just $10 to $15 billion annually four or five years ago. No timeline was given for when the $150 billion level would be reached.

Nvidia stock (NVDA) edged down 0.22% on the day, while Taiwan Semiconductor Manufacturing (TSM) rose 1.93%.

NVIDIA Corporation, NVDA

The news sent Taiwan’s broader Taiex index to a record close, gaining 1.7% on the session. TSMC, Nvidia’s primary manufacturing partner, closed up 1.3%. MediaTek jumped 8.8% and Delta Electronics gained 7.2%.

Nvidia is expected to overtake Apple as TSMC’s largest customer this year. The $150 billion annual figure would actually exceed Nvidia’s own quarterly revenue — the company posted a record $81.6 billion in revenue for the quarter ended April 26 and is guiding for $91 billion in the current quarter.

By year-end, Nvidia plans to begin construction on a new Taipei office complex called Constellation. When it opens in 2030, it will house up to 4,000 employees in northern Taipei — four times the company’s current headcount in the region.

China Takes the Hit

The Taiwan expansion comes as Nvidia’s business in mainland China has gone the other direction. In its most recent quarter, revenue from mainland China and Hong Kong halved year-over-year, while Taiwan revenue surged more than 50%.

Chinese chip stocks dropped sharply on Wednesday. Cambricon fell 5% and Hygon slid 7%. Those two had rallied earlier in the week after Huawei announced a new chip engineering approach called “LogicFolding,” which it plans to use in a smartphone chip this fall and in data center chips “by around 2030.”

The Geopolitical Backdrop

The spending plan lands at a sensitive moment. President Trump suggested earlier this month he might use a $14 billion U.S. arms package for Taiwan as a “negotiating chip” with China, comments that followed his summit with Chinese leader Xi Jinping. Trump later said U.S. policy on Taiwan hasn’t changed, and separately approved an $11.1 billion arms package in December.

Nvidia has also committed to investing $500 billion in AI infrastructure in the U.S. over four years — roughly $125 billion annually — with local manufacturers.

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