Nvidia is once again in the global market spotlight as the company's expansion into physical AI has sparked a surge in shares among its Asian partners. The development comes as the Asian region becomes more deeply involved in Nvidia's business ecosystem, particularly through manufacturing, assembly, components, robotics and smart automotive solutions.
Among the companies receiving investor attention are LG Electronics, Nanya Technology, Huizhou Desay SV Automotive and Pateo Connect Technology. LG Electronics' shares reportedly jumped up to 15% after reports of the company's home robot integration plans with the Nvidia platform, while Nanya Technology rose 10% following news of a collaboration with the US chip giant. In China, Huizhou Desay SV Automotive and Pateo Connect Technology also recorded gains after being linked to smart driving solutions and several forms of collaboration with Nvidia.
According to reports, Asian suppliers now account for about 90% of Nvidia's production costs, up from around 65% last year, thus showing how much Nvidia depends on the region's supply chain.
From Factory to Military
Meanwhile, Nvidia’s development also extends beyond the commercial sector as the US Department of Defense signed new agreements with Nvidia, Microsoft, Reflection AI and Amazon Web Services to bring AI systems into classified military networks. The agreement comes as the Pentagon looks to expand the use of AI in defense operations, adding to other technology partners already involved such as SpaceX, OpenAI and Google.
The Pentagon’s selection of Nvidia is seen as in line with the US Department of Defense’s strategy to maintain leadership in artificial intelligence (AI) technology for national security. In an official statement, the department stressed that effective AI capabilities depend on a strong domestic ecosystem, including high-capacity model developers and technologies.
