Nvidia (NVDA) is embarking on a significant expansion of its production capabilities within the United States, focusing on the manufacture of AI supercomputers. The company, in collaboration with its manufacturing partners, is developing facilities to build these advanced machines entirely on U.S. soil for the first time.
The ambitious project includes over a million square feet of manufacturing space to produce and test Nvidia's Blackwell chips in Arizona and AI supercomputers in Texas. Currently, the Blackwell chips have commenced production at Taiwan Semiconductor Manufacturing Company’s (TSM) plants in Phoenix. In Texas, Nvidia is constructing supercomputer manufacturing sites with partners Foxconn (HNHPF) in Houston and Wistron in Dallas. Full-scale production at these sites is slated to ramp up over the next 12 to 15 months.
Nvidia's efforts are supported by partnerships with Amkor Technology (AMKR, Financial) and Siliconware Precision Industries (SPIL) to handle the packaging and testing processes. Over the next four years, Nvidia aims to produce up to half a trillion dollars of AI infrastructure in the U.S., utilizing cutting-edge AI, robotics, and digital twin technologies, such as the Nvidia Omniverse and NVIDIA Isaac GR00T, to optimize factory operations and automation.
In other developments in AI, Palantir Technologies (PLTR) has enhanced NATO's military capabilities with its Maven Smart System, set to be operational within 30 days, providing advanced AI-driven decision-making and operational tools. Meanwhile, Meta Platforms (META) plans to leverage public content from European users to train its AI models, ensuring compliance with user data preferences through an objection form process.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Amkor Technology Inc (AMKR, Financial) is $30.78 with a high estimate of $36.00 and a low estimate of $24.00. The average target implies an upside of 80.82% from the current price of $17.02. More detailed estimate data can be found on the Amkor Technology Inc (AMKR) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Amkor Technology Inc's (AMKR, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Amkor Technology Inc (AMKR, Financial) in one year is $25.24, suggesting a upside of 48.3% from the current price of $17.02. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Amkor Technology Inc (AMKR) Summary page.
