Key Points
Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor Manufacturing (NYSE: TSM) are pivotal in the artificial intelligence (AI) value chain, with Nvidia leading in GPU design and TSMC excelling in chip fabrication. As of late 2023, Nvidia has visibility into $500 billion in anticipated revenue from its Blackwell and Rubin platforms, with $150 billion already shipped. TSMC, on the other hand, focuses on advanced chip production, including 7-nanometer processes and upcoming 2-nanometer technology aimed for volume production in 2026.
TSMC plans to increase its Chip on Wafer on Substrate (CoWoS) monthly capacity from 75,000 to up to 130,000 wafers by the end of 2026 to alleviate bottlenecks in shipments. While Nvidia is poised for substantial growth, it relies heavily on TSMC for its advanced chip manufacturing capabilities, raising concerns over geopolitical risks that may affect TSMC’s market position.
