Regardless of market hypothesis of a significant discount in Nvidia Company’s NVDA 2025 Chip-On-Wafer-On-Substrate (CoWoS) wafer orders at Taiwan Semiconductor Manufacturing Co TSM, famend analyst Ming-Chi Kuo has debunked the rumors, confirming that TSMC’s enlargement plans stay on monitor.
What Occurred: Market chatter instructed that Nvidia’s CoWoS wafer orders at TSMC had been lower from over 400,000 wafers to 380,000 wafers, fueling issues about AI demand fluctuations.
Nonetheless, on Monday, Kuo stated that these rumors had been possible primarily based on misinterpretations of Nvidia’s manufacturing technique and exaggerated expectations of TSMC’s capability.
“Nvidia’s CoWoS orders at TSMC for 2025 are roughly 370,000 wafers (variations inside low single digits are thought of regular vary),” he stated, including, “TSMC’s CoWoS enlargement plan stays unchanged … concentrating on roughly 70,000 wafers per thirty days by December 2025.”
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Kuo additionally identified that some market individuals overestimated TSMC’s CoWoS capability and misinterpreted Nvidia’s faster-than-expected transition from B200 to B300 sequence GPUs as an indication of order reductions.
Why It is Vital: The CoWoS course of is crucial to Nvidia’s AI chip manufacturing, because it permits high-performance computing for GPUs utilized in information facilities and AI fashions.
Kuo’s report comes on the heels of Nvidia’s spectacular fourth-quarter earnings. The AI chip large reported fourth-quarter income of $39.3 billion, reflecting a 12% improve quarter-over-quarter and a 78% surge year-over-year.
The determine surpassed Wall Road’s consensus estimate of $38.05 billion.
In the meantime, TSMC reported fourth-quarter income of $26.88 billion (NT$868.46 billion), marking a 38.8% year-over-year improve and exceeding the analyst consensus estimate of $26.28 billion.
Worth Motion: 12 months thus far, Nvidia inventory is down 9.68%, whereas TSMC inventory has declined 10.44%, in keeping with Benzinga Professional information.
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