Chipmaker Nvidia’s (NVDA) shares fell on Friday morning as Foxconn (HNHPF), its Taiwanese data center partner, confirmed plans to deliver the $1.4 billion supercomputing cluster during the first half of 2026.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
The 27-megawatt data center, which Nvidia CEO Jensen Huang announced in May this year, is being built for Nvidia by Foxconn in partnership with the Taiwanese government. The data center is expected to be powered by Nvidia’s GB300 NVL72, a system that provides in one place the capabilities of the chip designer’s advanced Blackwell Ultra graphics processing units and the Grace central processing unit.
Nvidia expects its long-standing chip manufacturer, Taiwan Semiconductor Manufacturing Company (TSM), to rely on the data center to optimize its chip manufacturing. The supercomputing cluster is also expected to help boost Taiwan’s AI infrastructure.
Foxconn Ramps up AI Business
Foxconn, known as Apple’s (AAPL) key iPhone manufacturer, has expanded its electronics manufacturing business to include AI data centers and electric vehicles. Supercomputing cloud and networking products, including AI servers, now make up 42% of Foxconn’s revenue.
Foxconn has emerged as a key supplier of Nvidia-powered systems designed to train and run large AI models.
Nvidia Stock Falls despite Solid Q3
The update from Foxconn comes as Nvidia’s stock continues to fall despite the chipmaker’s blockbuster third-quarter earnings results that earned cheers from both Wall Street and the White House. The decline points to increasing investor wariness about stretched valuations and possible risks tied to the AI sector, among other factors.
Is NVDA a Strong Buy?
On Wall Street, Nvidia’s shares currently boast a Strong Buy consensus rating from analysts. This is based on 38 Buys, one Hold, and one Sell assigned by 40 analysts over the last three months.
Moreover, the average NVDA price target of $255.63 indicates almost 42% upside from the current trading level.
