Nvidia stock leaps after massive U.S. investment surprise
Nvidia has found itself in the crosshairs of an escalating trade war between Washington and Beijing.
Nvidia unveiled plans for a massive investment in its U.S.-based manufacturing setup Monday as the ripple-effects of President Donald Trump's tariff gambit, as well as China's retaliation towards the tech sector, continue to reverberate.
Nvidia (NVDA) said it plans to manufacture an American-made 'supercomputer' from a U.S. platform, and plans to produce as much as $500 billion in AI infrastructure over the next four years as part of a partnership with Foxconn and Taiwan Semiconductor.
The plants are expected to be built in Arizona and Texas and will be used to test Nvidia Blackwell chips in the former and the AI supercomputers in the latter. 
“The engines of the world’s AI infrastructure are being built in the United States for the first time,” said CEO Jensen Huang. “Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency.”
Nvidia has found itself in the crosshairs of the accelerating trade war between Washington and Beijing, with President Trump planning tariffs on the tech sector that will sit alongside his recently-reduced 20% levy on China-made goods.
Related: Apple, Nvidia lead tech tumble as China retaliates on U.S. tariffs
Late last month, London's Financial Times reported that Beijing is looking to curb some of Nvidia's exports on the basis of new environmental restrictions.
China's State Administration for Market Regulation launched an investigation into Nvidia in January tied to allegations it had breached anti-monopoly laws with its $6.9 billion purchase of Mellanox Technologies in early 2020.
Nvidia generated around $5.4 billion in China-based revenue for its fiscal third quarter ended in October, with another $5.15 billion coming from clients and customers in Taiwan. Collectively, the two accounted for some 30% of the group's overall tally of $35.1 billion.
Nvidia shares were last marked 3.9% higher in premarket trading immediately following the investment announcement to indicate an opening bell price of $115.27 each.
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