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On Wednesday, Nvidia Corporation (NASDAQ:NVDA) denied reports that it plans to invest $1 billion in northern Mexico after the state's governor announced the tech giant would build a major artificial intelligence data center there. Governor's Claim Triggers Confusion Over AI Project Nuevo León Governor Samuel García shared a video on X, formerly Twitter, and said, "Nvidia, the most important company in software and Artificial Intelligence, arrives in our state with an investment of 1 BILLION DOLLARS." The governor appeared alongside individuals identified as Nvidia representatives during the announcement, reported Reuters. However, confusion erupted just hours later when Nvidia told the publication that it has no financial investment plans in Nuevo León. See Also: Nvidia CEO Jensen Huang Hails TSMC Wafer Backing Amid ‘Very Strong’ Demand For Blackwell Chips After Trump Bars Sales To ‘Other People’ The company said its support for Latin America's technological progress "is based exclusively on cooperation initiatives, research and talent development," not direct capital investments. It remains unclear who the Nvidia representatives were in García's video or why they did not dispute the governor's initial claims. Nvidia did not immediately respond to Benzinga's request for comments. Governor Walks Back Comments, Cites Local Firm As Investor García also appeared to walk back his remarks, clarifying that the planned data center investment would actually come from Mexico's CIPRE Holding, which intends to use Nvidia's technology in its operations. Local media outlets reported that the project, initially described as Nvidia's investment, would instead be developed by the Mexican firm with the chipmaker providing technological infrastructure support, the report noted. Bank Of America Backs Nvidia With Buy Rating Next week, the semiconductor giant will report its third-quarter earnings. Bank of America Securities analyst Vivek Arya reiterated Buy ratings on major data center and semiconductor equipment stocks, including Nvidia. The analyst called Nvidia "particularly compelling," citing strong visibility in its data center business. According to Arya, based on the company's current order outlook, Nvidia could see revenue and earnings per share rise 50% and 70% year over year in 2026, respectively, while still trading at a relatively modest 24x earnings multiple. Price Action: Nvidia closed at $193.80, up 0.33% on Wednesday, but slipped 0.94% to $191.98 in after-hours trading, according to Benzinga Pro. Benzinga's Edge Stock Rankings place the chipmaker in the 98th percentile for Growth and 93rd for Quality, underscoring its robust performance compared with industry peers. Read More: Tesla Investor Ross Gerber Says ‘Super Sad' To See Federal EV Subsidies End: ‘Credits Created…' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Hepha1st0s/ Shutterstock
