Nvidia Invests $150B Yearly in Taiwan, Stock Dips on May 28

Nvidia CEO Jensen Huang announced Wednesday that the company will spend $150 billion annually in Taiwan, up from $10-15 billion five years ago. The chipmaker is building a new headquarters in Taipei to employ 4,000 people by 2030. Taiwan’s stock market climbed 1.7% on the news, but Nvidia shares fell 1.05% to $212.60. Meyka rates NVDA an A with a 12-month target of $244.00, suggesting upside despite the near-term dip.

Taiwan Becomes Nvidia’s AI Hub

Huang called Taiwan the “epicenter of the AI revolution” during the announcement in Taipei. The new Constellation campus will open in 2030 and house 4,000 engineers. Nvidia’s spending in Taiwan has jumped from $10-15 billion annually four to five years ago to $100-150 billion today. The company designs chips while Taiwan Semiconductor Manufacturing Co. (TSMC) manufactures them. Nvidia is expected to become TSMC’s largest customer this year, surpassing Apple.

Taiwan Chip Stocks Rally on the News

Taiwan’s Taiex index climbed 1.7% to a record close on Wednesday. TSMC shares rose 1.3%, MediaTek gained 8.8%, and Delta Electronics jumped 7.2%. South Korea’s SK Hynix and U.S.-based Micron also reached $1 trillion in market value recently. The investment signals strong demand for semiconductor manufacturing capacity as AI adoption accelerates globally.

Why Nvidia Chose Taiwan

Huang emphasized that Taiwan manufactures chips, advanced packaging systems, and AI supercomputers. The country is home to manufacturing partners including TSMC, Foxconn, Wistron, and Quanta Computer. Huang also stressed the need for energy infrastructure, noting that “AI labor needs electricity” as much as human labor needs food. The new headquarters will strengthen Nvidia’s partnerships across Taiwan’s semiconductor ecosystem.

Nvidia Stock Slips Despite Expansion Plans

Nvidia shares fell 1.05% to $212.60 on May 28, down from $214.86 the previous close. The stock has declined 3.76% over five days but gained 20.11% over six months. Meyka’s A grade and $244.00 yearly target suggest the market may be undervaluing the stock. With 93 analysts rating NVDA a Buy and only 2 rating it a Hold, consensus supports further upside from current levels.

Final Thoughts

Nvidia’s $150 billion annual Taiwan investment underscores the company’s confidence in AI demand and Taiwan’s manufacturing dominance. With Meyka rating NVDA an A and targeting $244.00 annually, the stock pullback offers a buying opportunity for long-term investors.

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