Nvidia announces US-manufactured AI chips, stock jumps

Nvidia has announced that its upcoming generation of AI accelerators will be manufactured within the United States, marking a major milestone in the company’s strategy to strengthen domestic production.
The move, aligned with U.S. semiconductor initiatives and government incentives, immediately pushed Nvidia’s stock up over 6% in after-hours trading.

The decision reduces Nvidia’s reliance on overseas fabrication partners and mitigates potential supply-chain risks related to geopolitical tensions. It also positions the company to take advantage of the U.S. CHIPS and Science Act, which aims to bolster local semiconductor manufacturing.

Key highlights:

• Nvidia will collaborate with U.S. foundries to produce a subset of its next-generation Blackwell-class AI processors.
• The initial production line is expected to start in late 2026, with test runs as early as Q2 2025.
• Executives cited growing demand from government, defense, and hyperscale cloud customers requiring secure, domestically sourced chips.
• Analysts believe U.S. production could trim logistics delays by 20–30% and provide Nvidia with leverage in regulatory discussions.
• Nvidia’s market capitalization briefly crossed $3 trillion following the announcement.

Industry context:
The semiconductor industry has faced turbulence over the last few years due to pandemic-era disruptions and geopolitical restrictions on chip exports to China.
Nvidia’s decision follows similar moves by Intel, TSMC, and Samsung to expand U.S. fabrication capacity — signaling a broader shift toward localized, resilient chip ecosystems.
Competitors like AMD and Google are reportedly exploring co-manufacturing models that balance global scale with regional autonomy.

Apptastic Insight:
By blending world-leading GPU design with U.S.-based production, Nvidia is future-proofing its supply chain and aligning with the next wave of AI infrastructure sovereignty.
For developers and investors alike, this signals that the race for AI dominance is increasingly tied to where chips are built, not just how fast they run.