Nvidia’s Physical AI Shift Drives 15% Gains for LG, 10% for Nanya
NVDA•Asian suppliers now account for 90% of Nvidia’s production costs, up from 65% last year, driving LG Electronics shares up 15% and Nanya Technology up 10% after collaboration announcements. U.S. hyperscalers are committing nearly $200 billion each to AI, with Nvidia powering half of Microsoft’s capex and a quarter of Amazon’s.
1. Pivot to Physical AI
Nvidia is extending its AI beyond semiconductors into robotics, autonomous systems and AI-enabled manufacturing, a shift positioned as the next major wave of artificial intelligence.
2. Supply Chain Rally
Asian suppliers now account for 90% of Nvidia’s production costs, up from 65% last year. Key partners such as LG Electronics and Nanya Technology saw shares rally 15% and 10%, respectively, after announcing collaborations on home robots and advanced memory solutions.
3. Hyperscaler Capex Impact
U.S. hyperscalers including Amazon, Microsoft and Alphabet have earmarked nearly $200 billion each for AI spending this year, with Nvidia supplies representing about half of Microsoft’s capital expenditure and one quarter of Amazon’s, fueling broader demand for hardware suppliers.
