Mentioned
NVIDIA Corporation
NVDA
-1.15 (-0.51%)
223.77
223.89
Azarudeen Mohamed Ali
Azarudeen Mohamed Ali
United Arab Emirates
2mo
Nvidia's biggest hurdle is TSMC's capacity: Nvidia dominates AI chips. Jensen Huang has $1 trillion in GPU orders through 2027. The company's stock trades at a forward P/E that implies continued dominance for years. And yet Nvidia may have to redesign its next-generation chip because there is nowhere to build it. Breaking down the buzz: Reports this week indicate Nvidia may have to redesign its next-generation AI chip, codenamed Feynman, because there is not enough factory space to build it the way Nvidia intended. Feynman is scheduled for 2028 and was planned to use TSMC's most advanced production process. The problem: that production line is already fully booked by other customers, including Meta, Apple, AMD, Google and Amazon, all of whom are racing to build their own AI chips on the same equipment. The proposed fix is a compromise. Only the most critical parts of the chip would use the latest process; the rest would be built on older, cheaper technology. That kind of hybrid design affects performance, cost and potentially the release date. This is not a new problem. TSMC has already told Nvidia and Broadcom it cannot meet all of their demand at its most advanced nodes. The advanced packaging process that bonds memory to AI chips has been sold out through 2026. Memory suppliers SK Hynix and Micron have both said their 2026 supply is fully allocated. The entire AI supply chain, from chip fabrication to memory to assembly, is running at or beyond capacity. Why this matters: Nvidia's dominance is usually described as a software and ecosystem advantage: the tools developers use, the networking architecture, the full-stack AI platform. But, all of this depends on the number of wafers one company in Taiwan can process per month. Jensen Huang himself has said Nvidia's demand alone could require TSMC to more than double its total capacity over the next decade. Copy my portfolio for steady and consistent growth, $NVDA (NVIDIA Corporation)
Not investment advice. The author may have financial interests in the mentioned instruments.
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NVDA
NVIDIA Corporation
224.17
-1.15 (-0.51%)
1 Mentioned
NVIDIA Corporation
NVDA
NVIDIA Corporation
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