Market Commentary

From Silicon Valley to Hanoi: Nvidia's Bold Step Toward Tech Leap

Laiba Bilqees
5 Feb 2024 · 1 minute read

Nvidia's (NVDA:US) CEO, Jensen Huang, unveiled plans during his inaugural visit to Vietnam, solidifying a deeper collaboration between the U.S. chip giant and Vietnam's tech titans. With a substantial $250 million investment already made in Vietnam, Nvidia aims to fortify partnerships with Viettel, FPT, Vingroup, and VNG, focusing on AI development and bolstering digital infrastructure.

"Vietnam is already our partner as we have millions of clients here," affirmed Huang, emphasizing a commitment to deepening ties with key Vietnamese companies, highlighting Nvidia's support for the country's AI development and infrastructure.

Ahead of a meeting scheduled for Monday, reports surfaced indicating Nvidia's discussions on semiconductor cooperation with Vietnamese tech entities and authorities. Huang's visit coincides with Vietnam's aspirations to expand into chip design and potentially chip manufacturing, leveraging trade tensions between the U.S. and China to foster growth in the industry.

Vietnam's investment minister, Nguyen Chi Dzung, underlined the country's efforts to attract investments in semiconductor and AI industries. Dzung echoed Huang's proposal, urging Nvidia to contemplate establishing a research and development hub in Vietnam, following discussions with Prime Minister Pham Minh Chinh.

The chipmaker's CEO expressed intent to establish a base in Vietnam, affirming the company's commitment to developing the nation's semiconductor ecosystem and digitalization. Nvidia envisions this base as a talent magnet, drawing global expertise to contribute to Vietnam's technological advancement.

Notably, Representative David Kustoff's disclosure of purchasing Nvidia shares worth $15,000 - $50,000 on November 29 signals investor confidence amidst the company's strategic maneuvers in Vietnam and the evolving global tech landscape.