Forget Big Tech. Nvidia (NVDA) is making a pivotal move, government by government, chip by chip. Fresh off a multi-billion-dollar AI deal with Saudi Arabia, the AI chip giant is joining forces with Taiwan, Foxconn (HNHPF), and TSMC (TSM) in what’s shaping up to be a geopolitical shift. Unlike Nvidia’s new venture in the Gulf, Taiwan is familiar ground; the company has long-standing ties with TSMC, and in just Q1 alone, it generated over $5 billion in revenue from the region.
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Building an “AI Factory”
Over the weekend, Nvidia CEO Jensen Huang announced a major new project: an AI supercomputer, dubbed an “AI factory,” being built in partnership with Foxconn and the Taiwanese government. The goal is to turbocharge Taiwan’s AI infrastructure and help everyone from university researchers to tech startups and chip titans like TSMC ride the next wave of machine learning innovation.
We’re talking about 10,000 Blackwell GPUs – Nvidia’s latest and greatest AI chips – powering a system designed to handle massive workloads in training, inference, and R&D. TSMC plans to use it to fast-track chip development. Meanwhile, Taiwan’s National Science and Technology Council will open the system up to public institutions and enterprises, helping cement Taiwan’s place on the global AI map.
However, Nvidia isn’t stopping there. It’s tightening ties with Taiwanese hardware makers like Acer, Asus, and Gigabyte to launch high-performance desktop supercomputers. These new DGX Spark and DGX Station models will let developers build and test AI models right from their desks, without a data center.
The Big Picture
Nvidia is rewriting the AI playbook. Instead of relying solely on U.S. cloud giants like Microsoft (MSFT) and Google (GOOGL) (GOOG), it’s striking “sovereign AI” deals with countries eager to build their own AI stacks. First Saudi Arabia. Now Taiwan.
And in a world where every country wants to future-proof its tech economy, that might be the smartest move of all.
Is Nvidia a Buy, Sell, or Hold?
According to Wall Street analysts, Nvidia has a Strong Buy rating and an average NVDA stock price target of $164.51. This implies a 21.50% upside potential.
