Semiconductor giant Nvidia (NVDA) has vowed to invest billions of dollars in U.S.-manufactured chips and electronics over the next four years. The news was first reported by the Financial Times, citing an interview with NVDA CEO Jensen Huang. At the same time, Nvidia denied reports indicating that Taiwan Semiconductor (TSM) had approached the company to jointly invest in taking over Intel’s (INTC) struggling foundry business.
Nvidia’s Billion-Dollar Bet in AI
The report noted that Nvidia could invest up to half-a-trillion dollars in AI (artificial intelligence) and chip projects over the next four years. Huang highlighted the increasing threat from Chinese competitor Huawei and mentioned that Nvidia was encouraged to manufacture its advanced systems through suppliers TSM and Foxconn. He also noted that Nvidia’s latest Blackwell chips were being manufactured on American soil and showed confidence in the Trump administration to support the growth of the domestic AI industry.
The escalating trade tariffs have prompted several companies to invest in the U.S. For instance, Apple (AAPL) has committed billions to expand its U.S. operations and reduce dependence on China. Huang also emphasized TSMC’s billion-dollar investments in U.S. fabrication plants as one of the key factors in its decision and in streamlining its supply chain challenges. Major tech companies, including Microsoft (MSFT), Alphabet (GOOGL), and Meta Platforms (META), have also announced plans to invest billions in AI infrastructure this year.
During Nvidia’s annual developer conference, GTC 2025, Huang blatantly denied rumors about being invited to join a consortium investing in Intel. He jokingly said, “There might be a party. I wasn’t invited.” Nvidia impressed investors and analysts at the GTC event by unveiling two new microchips called Blackwell Ultra and Rubin AI and also announced the launch of two new personal AI supercomputers. Interestingly, TSM also dismissed rumors about the joint venture of investing in Intel’s foundry business, which dragged down INTC stock by nearly 7% yesterday.
Is Nvidia Stock a Good Buy?
Wall Street remains highly optimistic about Nvidia’s stock trajectory, as NVDA is one of the biggest beneficiaries of the AI revolution. On TipRanks, NVDA stock has a Strong Buy consensus rating based on 39 Buys and three Hold ratings. Also, the average Nvidia price target of $176.81 implies 50.5% upside potential from current levels. In the past year, NVDA stock has gained over 30%.
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