Mechanics jumps 5% on Nvidia partnership

Samsung Electro-Mechanics will receive a $2.8 billion investment from Tesla and Nvidia to build facilities for advanced chip substrates in Sejong, South Korea, according to a report by Maeil Business Newspaper. Tesla will invest $1.1 billion, while Nvidia will invest $2.6 billion, under a long-term supply contract.

NVIDIA (NVDA) forecasts max 3M GPUs produced globally by 2027, citing export limits and supply constraints. The company unveiled the Vera Rubin AI platform, a 72-GPU system, and secured long-term capacity deals. NVIDIA's guidance remains unchanged, with capex expected at $35–40B for Q4. Major Chinese firms ordered over 3M RTX PRO 5500 GPUs, signaling strong demand.

Nvidia CEO Jensen Huang met with German Chancellor Friedrich Merz, who highlighted Germany's industrial AI data advantage. Nvidia plans to invest nearly $10 billion in Europe, including four German start-ups: Agile Robots, Avelios Medical, Mirelo, and Reflex Aerospace. Intel's $30 billion investment cancellation left Germany with spare funds.

NVIDIA's Physical AI revenue surpassed full-year forecasts, with supply chain expansions indicating higher-than-expected CPU demand. Goldman Sachs maintains a Buy rating with a $300 price target, citing strong unit economics, security upgrades, and revenue diversification. NVIDIA's supply chain is preparing for accelerated deployments, and the company has authorized $235 billion in buybacks.

ByteDance, Alibaba, and Tencent ordered over 3M Nvidia RTX PRO 5500 GPUs, totaling $35B. Nvidia's 2027 production is capped at 3M units, creating supply constraints. Chinese demand is 6M units, exceeding global supply. Deliveries begin Q1 2027. Oil majors report significant profit increases due to geopolitical instability and price surges.

Nvidia introduced DSX POD, a reference design for AI factories, reducing deployment time from six months to 14 days. The design integrates components in a factory, cutting onsite work and delays. Nvidia shares rose 0.72% intraday. CEO Jensen Huang noted faster revenue generation. GuruFocus identified 4 warning signs for NVDA.