Foxconn plans a huge Taiwan AI data center with NVIDIA
Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, said on May 20 that the artificial intelligence centre, announced as Nvidia, is being constructed in stages and aims to have 100 megawatts of power.
All eyes are in nvidia (NASDAQ: NVDA) I’m preparing to report my revenue today. Why is the report so big? For several reasons. Nvidia controls the region that has driven stock market profits over the past two years, and investors are looking for clear signals for the future. I’m talking about artificial intelligence (AI). Some say this could be the next internet or phone from an innovation perspective.
Nvidia is one of the world’s leading manufacturers of AI chips, the tools that drive this whole revolution. Therefore, Nvidia’s words could set the tone not only for this AI giant, but also for other companies that operate within space.
This latest revenue report may also be extremely important as it is set against the backdrop of recent challenges, from President Trump’s import tariff plans to government restrictions on chip exports to China. These factors weighed Nvidia’s shares, falling 29% between early April and early April. Since then, stocks have rebound amid signs that import duties are not as severe as initially planned, and as of May 23, Nvidia’s inventory has fallen by around 2%.
So let’s think about what we should see for Nvidia and investors in this big moment in the future.
Nvidia’s total margin
First, it is important to note that NVIDIA has a track record of breaking analyst revenue estimates. So investors want to see if this will continue, especially as the company is still in the inception of Blackwell architecture. As new product rollouts are expensive, investors want to know if Nvidia has been able to keep its gross profit margins in a low 70% range, in line with previous forecasts. This indicates that sales continue to be profitable.
Nvidia customers have provided bright news in recent revenue reports, from meta platforms to alphabet, saying they are sticking to their capital expenditure plans for the year. Meta increased spending forecasts. Now, when Nvidia reports, it is key to hear relevant comments on demand to ensure that these spending plans actually benefit Nvidia. These customers are likely to continue investing in Nvidia products and services, but there are competitors and Nvidia customers may be considered their competitors themselves.
Another point to note is the commentary on exports to China. Nvidia previously said it would receive a $5.5 billion bill in quarter related to H20 chips designed for the Chinese market. The US has recently stopped selling its products and says Nvidia requires an export license.
Report on Nvidia’s efforts in China
Meanwhile, reports suggest that Nvidia is considering other ways to maintain its presence in the Chinese market, which accounts for 13% of its revenue in the recent fiscal year. For example, Nvidia is planning to launch a new chip for China, and cites a source familiar with the project, reporting that mass production could begin as early as next month.
Finally, Nvidia, which announced a new investment in manufacturing in the US a few weeks ago, may provide details about its efforts. Trump’s tariffs have not yet been applied to electronic devices, but the president has said he will be particularly employed on these types of products. Nvidia generally relied on production in Taiwan, but now it aims to bring this back to more and more homes. It is important to see how these movements affect Nvidia’s cost structure, and whether they are impacted in the short term and whether they can feel any further impact. Nvidia says two US facilities should start to increase within a year to 15 months.
Nvidia has proven itself a pioneer for the tech industry, so its revenue report can offer not only stocks, but also stocks in the direction of other tech players this week. While this revenue report is a big moment, investors should remember that they provide short-term photos of both Nvidia and the general AI market environment. And that means whether Nvidia is surprised upside down. You can win by holding this top AI player and other high quality technology stocks for a long time.
Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. Adria Cimino has no position in any of the stocks mentioned. Motley Fool has positions for Alphabet, Meta Platforms and Nvidia, and is recommended. Motley Fools have a disclosure policy.
The Motley Fool is a partner at USA Today, providing financial news, analysis and commentary designed to help people control their financial lives. The content is produced independently of USA Today.
Should I invest $1,000 in Nvidia now?
A miscellaneous fool’s offer: Consider this before purchasing shares on Nvidia.
Motley Fool Stock Advisor The analyst team has identified what investors believe to be the 10 best stocks to buy now. The 10 stocks that have made the cut could potentially generate monster returns over the next few years.
When should you think about it?NetflixI created this list on December 17, 2004…If you invested $1,000 at the time of recommendation,There is $639,271! * Or when nvidiaI created this list on April 15, 2005… If you invested $1,000 at the time of recommendation,There is $804,688! *
Now it’s worth notingStock AdvisorThe total average revenue of 957% – outperformance that breaks the market compared to167%For the S&P 500. Don’t miss out on the latest Top 10 list that you can use when participatingStock Advisor.
View 10 shares »
