In a significant boost to the tech industry, Foxconn, the world’s leading contract electronics manufacturer, has announced plans to construct a massive facility in Mexico dedicated to assembling AI servers powered by Nvidia’s cutting-edge GB200 chips. This move is expected to drive up demand for Nvidia’s Blackwell AI architecture, sending the company’s stock soaring.
According to Foxconn’s chair, Young Liu, the facility aims to produce an impressive 20,000 GB200 NVL72 servers by 2025, with each unit estimated to be worth around $3 million. This staggering demand has been described as “awfully huge” by Benjamin Ting, Foxconn’s senior vice president of cloud enterprise solutions, and “crazy” by Liu himself.
Nvidia’s CEO, Jensen Huang, had also echoed similar sentiments last week, citing immense interest in the company’s Blackwell system. As a result, Nvidia’s stock has seen a significant surge, rising 3.5% on Tuesday and extending its gains from the previous day. The stock is now trading near $133, approaching its record closing high of $135.57 set on June 18.
This upward trend is a remarkable turnaround for Nvidia, which had faced a summer slump due to reports of a design flaw in the Blackwell system. However, with the company’s shares more than doubling this year, it’s clear that investors are betting big on the future of AI technology.
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