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Nvidia has announced plans to manufacture its AI supercomputers entirely within the United States, a strategic move in response to new U.S. government export restrictions on advanced AI chips. The company disclosed that these controls, aimed at preventing the use of its H20 chips in Chinese supercomputers, are expected to result in a $5.5 billion revenue impact.
To mitigate these challenges, Nvidia is investing in domestic production facilities, including over one million square feet dedicated to building and testing its specialized Blackwell chips in Arizona and AI supercomputers in Texas. This initiative is part of a broader investment strategy to bolster U.S. manufacturing capabilities in the AI sector.
The export restrictions have led to a nearly 6% drop in Nvidia’s shares, reflecting investor concerns over the company’s access to the Chinese market. However, Nvidia’s commitment to expanding its U.S. manufacturing footprint may offset some of these losses by positioning the company to better serve domestic demand and comply with regulatory frameworks. Investors should monitor how these developments affect Nvidia’s long-term growth prospects and the broader semiconductor industry.
Source: The Wall Street Journal
