NVIDIA Announces Increased Annual Spending to 150 Billion in Taiwan, Boosts Taiwan Stock Market Semiconductor Stocks

NVIDIA CEO Huang Renxun announced in Taipei on Wednesday that the company's annual spending in Taiwan will increase from the current $100 billion to $150 billion, and plans to build a new large office park, which boosted the Taiwan Weighted Index to close up 1.7% at a new historical high on the same day.

Huang Renxun said that just four or five years ago, NVIDIA's annual spending in Taiwan was only between $10 billion and $15 billion, and now this figure has expanded to the scale of tens of billions and will jump again. NVIDIA also announced that it will start the construction of a new office park named "Constellation" at the end of this year. The park is located in the north of Taipei and is expected to be completed in 2030, accommodating about 4,000 employees, four times the current number of employees in Taiwan.

The annual regional expenditure of $150 billion even exceeds NVIDIA's single-quarter revenue level - the company's revenue for the quarter ending in April was $81.6 billion, and the revenue guidance for this quarter is $9.1 billion. As a reference, NVIDIA previously announced an investment of $500 billion in the United States over the next four years for AI infrastructure construction, equivalent to an average of about $125 billion per year, and Taiwan's annual expenditure level has already surpassed this level.

Huang Renxun positioned Taiwan as the "epicenter of the AI revolution" and pointed out that the combination of AI and hardware, known as "physical AI," will profoundly change the manufacturing industry. The latest quarterly data shows that NVIDIA's revenue from Taiwan grew by more than 50% year-on-year, and the company expects to surpass Apple and become TSMC's largest customer this year.

In the market, TSMC closed up 1.3% that day, MediaTek soared 8.8%, and Delta Electronics rose 7.2%. SK Hynix and Micron joined the trillion-dollar market value club on the same day, further boosting the overall market sentiment.