Core Insights - Foxconn announced a joint investment of $1.4 billion with Nvidia to build a supercomputing center, set to be completed in the first half of 2026, which will be the largest advanced GPU cluster in Taiwan and the first AI data center in Asia using Nvidia's next-generation Blackwell GB300 chips [1] - The center will have a power capacity of 27 megawatts, highlighting the scale of the investment in AI infrastructure [1] - Foxconn's new AI supercomputing and cloud business subsidiary, Visonbay.ai, is positioned to capitalize on the growing demand for AI capabilities [1] Investment and Production Capacity - Foxconn is expected to invest between $2 billion to $3 billion annually in the AI sector, driven by the demand for AI-related infrastructure [2] - The company currently produces 1,000 AI racks per week, with plans to increase this capacity next year [2] - The collaboration with Nvidia aims to implement AI technology in factories and production lines, enhancing operational efficiency [2] Electric Vehicle Development - Foxconn's electric vehicle production has reached a critical point, encouraging more automakers to outsource production to the company [2] - The company showcased its first electric vehicle, "Model A," designed by Japanese engineers, with plans for localized production in Japan [2]

Core Viewpoint - Nvidia reported its Q2 FY2026 earnings, showing revenue of $46.743 billion, a 56% year-over-year increase, slightly exceeding market expectations. However, concerns arose due to data center revenue falling short of projections, leading to a decline in stock price and a market cap loss of $130 billion [2]. Financial Performance - Q2 revenue reached $46.743 billion, up 56% year-over-year, with net profit at $26.422 billion, a 59% increase. The gross margin was 72.4% [2]. - Data center revenue was $41.1 billion, a 56% year-over-year increase, while gaming and AI PC revenue was $4.3 billion, up 49%. Professional visualization revenue was $601 million, a 32% increase, and automotive and robotics revenue was $586 million, up 69% [2]. Business Segments - The data center business remains the core growth engine, but its revenue performance raised concerns about future growth and profitability [2]. - Blackwell architecture chips are in full production, with expectations for increased output in Q3. The RTX Pro server is also in full production, with nearly 90 companies adopting it for real-time simulation and digital twin applications [4]. Market Outlook - Nvidia anticipates over $20 billion in sovereign AI revenue this year, more than doubling from the previous year. The company expects continued growth in AI infrastructure investments driven by the need for more training and inference computing [4][5]. - Nvidia's CEO highlighted the significant capital expenditure in AI infrastructure, estimating $600 billion in spending over the next two years, primarily from major cloud service providers [5]. Competitive Landscape - Nvidia's position in the GPU market is strong, with its products being utilized across various AI frameworks. The company also produces CPUs and networking products, with networking revenue reaching $730 million in Q2 [6]. - The company is addressing challenges posed by ASICs in the AI space, emphasizing the complexity of AI factories and the importance of network connectivity for performance enhancement [6]. Future Guidance - For Q3, Nvidia projects revenue of $54 billion, with a GAAP gross margin of 73.3%, indicating a slight increase from the previous quarter [6].