Nvidia is reportedly planning a significant investment in semiconductor production and electronic components within the US. Over the next four years, total spending is expected to reach approximately $500bn, according to reporting by the Financial Times.
Huang, in an interview with the publication, indicated that a substantial portion of this investment could be directed towards domestic chip production. He suggested that the Trump administration may play a role in accelerating the growth of the AI industry in the US by supporting manufacturing initiatives. Nvidia has been addressing investor concerns about continued demand for its high-cost AI chips, particularly amid increased competition. This follows the launch of a chatbot by China’s DeepSeek, which reportedly operates with fewer AI chips, raising questions about potential shifts in the AI hardware market.
Huang has confirmed that Nvidia’s latest AI systems can now be manufactured in the US through partnerships with major suppliers, including Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn. He noted that TSMC’s investment in US-based manufacturing represents a significant step towards strengthening supply chain resilience, reducing dependency on overseas production, and ensuring steady access to critical semiconductor components.
The company’s expansion strategy comes at a time of heightened global competition in the AI sector, particularly from Chinese technology firms. Nvidia has acknowledged Huawei’s growing influence in the market, underscoring the need for continuous investment in advanced chip production and infrastructure to maintain its leadership position.
At the company’s developer conference in California on Wednesday, Huang told analysts that demand for Nvidia’s Blackwell AI chips could be significantly higher than current projections. He noted that orders for 3.6 million units from four major cloud firms underestimated overall market demand, as they did not account for purchases from Meta Platforms, smaller cloud providers, or AI-focused startups.
Expanding AI infrastructure through partnerships
Beyond manufacturing, Nvidia is expanding its role in AI infrastructure development through its participation in the AI Infrastructure Partnership (AIP). The consortium, which includes BlackRock, Global Infrastructure Partners, Microsoft, and MGX, aims to drive investment in AI-ready data centres and energy infrastructure. Initially, AIP plans to unlock $30bn in capital, with total investment potential reaching $100bn when including debt financing.
Nvidia will continue to serve as a technical advisor to AIP, leveraging its expertise in AI computing and data centre infrastructure. The initiative is expected to foster collaboration across a diverse network of investors, corporations, and technology firms, focusing on scalable AI solutions. AIP’s investments will be primarily directed toward the US and partner countries within the Organisation for Economic Co-operation and Development (OECD).
Last month, Nvidia forecasted revenue of approximately $43bn for the first quarter of fiscal 2026, surpassing market expectations. The company expects gross margins to be around 70.6%, with operating expenses estimated at $5.2bn on a GAAP basis. It also anticipates additional income of approximately $400m, excluding gains and losses from equity securities.
Read more: Nvidia forecasts $43bn in Q1 FY26 revenue as AI demand remains strong
