Nvidia’s Texas Factory Opens as a New CPU Battle Looms — and China Export Questions Resurface
Published on 07/23/2026 at 05:21 | Redaktion boerse-global.de
Nvidia’s week has been a study in contrasts. A major production milestone in the United States was quickly followed by a fresh allegation out of Washington that chips are still finding their way into unauthorized hands in China. For investors, the two developments underscore just how many moving parts now drive the stock’s trajectory.
Shares closed at €187.36 on Wednesday, up 3.01 percent on the session, pushing the company’s market capitalization past the equivalent of €4.3 trillion. That leaves the stock roughly 7.5 percent below its 52-week high of €202.50, reached on May 14. The recovery from earlier weakness is underway, but the gap to the record remains.
A 30,000-Square-Meter Facility Goes Live in Fort Worth
Taiwanese supplier Wistron opened its first U.S. manufacturing plant in Fort Worth, Texas, on July 21, investing $700 million in the facility. The site spans roughly 30,000 square meters and is already producing GB300 systems and Vera Rubin superchips for Nvidia’s infrastructure business. The move is part of a broader push to diversify production away from a handful of concentrated locations.
The new plant joins a global network of more than 350 factory sites across 30 countries that Nvidia has tied into its supply chain. Despite the positive news, the stock dipped intraday on the announcement — a reminder that supply-chain headlines alone do not always shift market sentiment.
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The Vera CPU Bet: Can Nvidia Crack the Server Market?
Beyond the factory opening, the more strategic question for Nvidia is whether its own ARM-based Vera architecture can disrupt the server CPU market — a domain long dominated by x86 processors from Intel and AMD. Nvidia already commands more than 90 percent of the AI graphics chip market, but entering the server CPU space represents a qualitative leap, not just incremental growth.
Early benchmarks are encouraging. Nvidia has stated that its Vera CPU runs Python code up to 1.8 times faster than AMD’s competing Epyc Turin processor. More striking is a test from cloud operator CoreWeave, which recorded a tenfold improvement in token output per watt when running the DeepSeek-R1 model on the new platform compared to the previous Grace Blackwell generation. That kind of efficiency could trigger a Jevons paradox effect, where lower operating costs for AI workloads actually boost overall demand rather than curbing it.
If hyperscalers and enterprise customers broadly adopt the integrated Vera Rubin platform, Nvidia gains a completely new revenue stream. If they stick with modular racks using rival x86 processors, growth in that segment will remain structurally limited.
A China Allegation Raises the Geopolitical Temperature
At the same time, a new accusation from the White House has injected fresh uncertainty. A U.S. official has accused Chinese company Moonshot of improperly using American AI models and Nvidia chips to build its Kimi K3 system, which debuted last week. Michael Kratsios, director of the Office of Science and Technology Policy, was cited as saying that Moonshot procured GB300 servers and accessed corresponding systems in Thailand — likely to train its own AI models. The allegation points to a violation of U.S. export control rules and the terms of use of the companies involved.
For Nvidia, the episode raises uncomfortable questions about how effectively unauthorized use of its chips abroad can be policed, even as the company expands its own manufacturing footprint inside the United States.
Valuation Hits a Seven-Year Low Even as Business Grows
The stock’s year-to-date gain stands at roughly 16 percent, with a 12-month advance of about 28 percent. Yet the current price-to-earnings ratio is at its lowest level in seven years, despite continued business expansion. That disconnect suggests the market is pricing in considerable uncertainty about the sustainability of AI spending.
Analysts remain broadly bullish. Zacks Research upgraded the stock to “Strong Buy” on July 22, citing solid fundamentals. The consensus price target sits at €264.89, implying upside of 41.2 percent from current levels. Institutional investors are also holding firm — Simplicity Wealth LLC increased its position during the first quarter.
The Bear Case: Cooling Investment and Rising Costs
The opposing view centers on a potential slowdown in the AI investment cycle. A warning sign came recently from TSMC, which reported strong quarterly results only to see its stock fall 5 percent — a signal that the market may be questioning whether the current level of capital expenditure on AI infrastructure can be sustained.
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Compounding the concern, TSMC plans price increases of up to 10 percent starting in 2027, which would directly pressure Nvidia’s hardware margins. On the competitive front, AMD is offering its Helios rack systems to major customers such as Microsoft Azure and has secured a significant AI computing deal with Anthropic. If key clients diversify their hardware suppliers to avoid single-vendor dependency, Nvidia’s pricing power would erode.
Technically, the stock sits 7.48 percent below its 52-week high. Any sign of weakening demand could trigger a test of the 50-day moving average at €181.43 — or even the 200-day average at €165.90.
What to Watch Next
Attention in the coming weeks will focus on two tracks: the progress of supply-chain expansion, as exemplified by the Fort Worth plant, and the geopolitical risk surrounding unauthorized chip access in China.
Major cloud customers including Microsoft, Meta, Amazon, and Alphabet report quarterly results at the end of July. Their capital expenditure plans for AI infrastructure are seen as a potential catalyst for new Nvidia orders. The company itself reports second-quarter earnings in late August. The key metric will be whether sequential growth holds and whether the Vera CPU is already contributing meaningfully to revenue. Only then will it become clear whether the server CPU bet is becoming a genuine pillar of the business.
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