Nvidia to produce next-gen Blackwell GPUs in the U.S. by 2026, boosting growth potential

Nvidia's announcement to produce its next-generation Blackwell GPUs in the U.S. by 2026 marks a significant shift in its manufacturing strategy. The chips will be produced at Taiwan Semiconductor Manufacturing's facility in Arizona and assembled in Texas, ensuring they are not subject to tariffs.

This strategic move is expected to enhance Nvidia's growth potential, especially as data center capital expenditures are projected to soar from $400 billion in 2024 to $1 trillion by 2028. Such growth in the data center market positions Nvidia favorably within the tech industry, making it a compelling stock for investors.

The decision to manufacture domestically aligns with broader trends in the semiconductor industry, where companies are increasingly looking to reduce reliance on overseas production. Nvidia's focus on U.S. manufacturing not only mitigates tariff risks but also supports local job creation and economic growth.

As the demand for advanced GPUs continues to rise, Nvidia's Blackwell GPUs are poised to play a crucial role in meeting the needs of data centers and AI applications, further solidifying the company's position as a leader in the tech sector.

Nvidia plans to manufacture its next-generation Blackwell GPUs in the U.S. by 2026, utilizing facilities in Arizona and Texas. This move is expected to enhance growth potential and avoid tariffs, aligning with a projected rise in data center capital expenditures to $1 trillion by 2028.