TLDR
- Nvidia CEO Jensen Huang announced plans to increase annual spending in Taiwan from $100 billion to $150 billion.
- Nvidia will build a new campus in Taipei called Constellation, set to open in 2030 with capacity for 4,000 employees.
- Taiwan’s Taiex index hit a record close, rising 1.7%, with TSMC up 1.3% and MediaTek surging 8.8%.
- Revenue from mainland China and Hong Kong halved in Nvidia’s latest quarter, while Taiwan revenue jumped over 50%.
- Chinese chip stocks fell sharply, with Cambricon down 5% and Hygon dropping 7% on the day.
Nvidia CEO Jensen Huang used an employee event in Taipei on Wednesday to make one of the company’s biggest commitments yet to Taiwan ā a plan to increase annual spending with Taiwanese suppliers from $100 billion to $150 billion.
$NVDA unveiled its new Constellation AI campus in Taipei which is a 4,000-employee R&D hub expected to begin operations by 2030.
Jensen said Nvidiaās Taiwan spending could reach $150B annually as physical AI pulls more manufacturing demand into Taiwanās ecosystem. pic.twitter.com/99VuJz2NJT
— Shay Boloor (@StockSavvyShay) May 27, 2026
The announcement came at the launch of a new Nvidia campus in Taiwan. Huang said the company was already spending around $100 billion a year in the region ā up from just $10 to $15 billion annually four or five years ago. No timeline was given for when the $150 billion level would be reached.
Nvidia stock (NVDA) edged down 0.22% on the day, while Taiwan Semiconductor Manufacturing (TSM) rose 1.93%.
The news sent Taiwan’s broader Taiex index to a record close, gaining 1.7% on the session. TSMC, Nvidia’s primary manufacturing partner, closed up 1.3%. MediaTek jumped 8.8% and Delta Electronics gained 7.2%.
Nvidia is expected to overtake Apple as TSMC’s largest customer this year. The $150 billion annual figure would actually exceed Nvidia’s own quarterly revenue ā the company posted a record $81.6 billion in revenue for the quarter ended April 26 and is guiding for $91 billion in the current quarter.
By year-end, Nvidia plans to begin construction on a new Taipei office complex called Constellation. When it opens in 2030, it will house up to 4,000 employees in northern Taipei ā four times the company’s current headcount in the region.
China Takes the Hit
The Taiwan expansion comes as Nvidia’s business in mainland China has gone the other direction. In its most recent quarter, revenue from mainland China and Hong Kong halved year-over-year, while Taiwan revenue surged more than 50%.
Chinese chip stocks dropped sharply on Wednesday. Cambricon fell 5% and Hygon slid 7%. Those two had rallied earlier in the week after Huawei announced a new chip engineering approach called “LogicFolding,” which it plans to use in a smartphone chip this fall and in data center chips “by around 2030.”
The Geopolitical Backdrop
The spending plan lands at a sensitive moment. President Trump suggested earlier this month he might use a $14 billion U.S. arms package for Taiwan as a “negotiating chip” with China, comments that followed his summit with Chinese leader Xi Jinping. Trump later said U.S. policy on Taiwan hasn’t changed, and separately approved an $11.1 billion arms package in December.
Huang didn’t address geopolitics directly, but the scale of the investment speaks for itself. “Taiwan is the epicenter of the AI revolution,” he said Wednesday.
Nvidia has also committed to investing $500 billion in AI infrastructure in the U.S. over four years ā roughly $125 billion annually ā with local manufacturers.
Huang added that AI combined with hardware, what he called “physical AI,” would “transform manufacturing,” and that Nvidia’s Taiwanese partners would benefit from those technologies directly.
šØ Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. Weāre also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
