Nvidia Builds Out the Factory Floor While Wall Street Audits the Bill
Published on 10/24/2026 at 03:30 | Editorial boerse-global.de
Nvidia is pushing its supply chain toward a multi-stage expansion that would more than double substrate capacity within three years, even as a prominent analyst and a fresh Reuters report keep the focus on who ultimately pays for the AI build-out.
Under agreements announced Wednesday with IBIDEN, Samsung Electro-Mechanics and Unimicron, the company plans to lift chip-carrier substrate capacity to 2.5 times current levels. The push does not stop at that single production stage. Amkor intends to grow its advanced chip-packaging capacity by more than 300 percent through the end of 2028, and Nvidia has committed a $1.1 billion capacity-reservation prepayment for new U.S. test facilities and equipment at KYEC. High-volume production at KYEC is targeted for April 2027.
That prepayment is telling. Nvidia is not content to let purchase orders carry the expansion alone — it is putting its own capital on the line. The arrangements amount to more than product announcements: they lay the groundwork for additional delivery capability, though they cannot substitute for customers actually calling off the volumes later.
A $35 Billion Order That Comes With an Asterisk
The demand side looks equally ambitious on paper. Reuters reported Tuesday that ByteDance, Alibaba and Tencent together ordered more than 3 million RTX PRO 5500 graphics cards, at a combined reported price above $35 billion. Nvidia has told those customers it cannot guarantee fulfillment, according to the report, citing demand running ahead of planned production.
Should investors sell immediately? Or is it worth buying Nvidia?
That caveat matters. An order is not a confirmed shipment, and the reported order volume does not translate into revenue already booked. The gap between intent and delivery is exactly where the debate now sits.
Google Cloud added its own signal Wednesday, announcing general availability of Nvidia's Vera Rubin infrastructure for November, with plans to scale to as many as 960,000 Rubin GPUs across multiple locations. Such a roadmap points to potential demand but is not proof of fully executed investment — technical readiness, financing and economic return all have to line up.
Seaport's Goldberg Keeps the Sell Rating
Jay Goldberg of Seaport Research Partners reaffirmed his sell recommendation on Nvidia today, pointing to competitive pressure and concerns about the company's commitments to back AI infrastructure. In his view, the business opportunities on offer do not outweigh the risks attached to those obligations.
His call is not a critique of any single contract. It is a broader judgment on competition and the cost of underwriting the build-out — a different question from whether demand exists. The reported orders speak to strong customer interest; the delivery warning limits how much that interest says about the near term, while Nvidia prepares capacity that has yet to come online.
Financing Fears Outlast the Tech Selloff
Reuters reported Thursday that worries about the capital needs of AI infrastructure persisted even as a global slide in technology stocks eased. The news agency flagged doubts over the costs and returns of the AI build-out as a drag on related shares, citing Meta's planned share issuance to fund AI spending as a fresh trigger. Nvidia chief Jensen Huang has also pointed to financing constraints at smaller AI companies.
Set against that, Nvidia's capacity program cannot be read in isolation as a growth signal. It can strengthen the company's ability to deliver, but it simultaneously raises the stakes on credible investment plans at the customer end. What counts from here is less the volume of announcements than the execution of the production milestones and the realization of the infrastructure projects themselves.
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