Jensen Huang, the CEO of chipmaker Nvidia (NVDA), announced that the company has started producing its most advanced AI chips, the Blackwell GPUs, in Arizona. Previously, these were made entirely in Taiwan. Unsurprisingly, Huang said that this move came after former President Trump personally asked him nine months ago to bring manufacturing back to the U.S. in order to boost national security and create jobs. As a result, chips and full systems will now be built in the U.S.
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Separately, to further strengthen the firm’s ties with the U.S., Huang also revealed a $1 billion stake in Nokia (NOK) as part of a partnership to build American-made 5G and 6G base stations. These stations, which were once heavily reliant on foreign tech, will now be powered by Nvidia’s ARC platform that features Grace and Blackwell chips. Huang emphasized that this will help the U.S. reclaim its edge in telecommunications. He also pointed out that AI-powered 6G could support advanced applications like robotic controls and climate prediction.
The push toward domestic production is also tied to U.S. export restrictions. Due to recent rules, Nvidia lost $10.5 billion in potential sales of its H20 chips to China. While Trump gave conditional approval for Nvidia to resume China shipments, the company must now pay a 15% fee on those sales. However, Huang previously admitted that Nvidia currently has zero market share in China. Therefore, to refocus on the U.S., Nvidia is developing seven supercomputers for the Department of Energy and rolling out NVQLink, which connects quantum computers to its GPUs.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 35 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nvidia price target of $225 per share implies 11.9% upside potential.
