TSM - Blackwell Demand to Benefit Both Nvidia and Taiwan Semiconductor. Is It Time to Buy Both Stocks?
2024-07-19 06:45:00 ET
According to recent reports out of Taiwan, the demand for graphic processing units (GPUs) based on Nvidia 's (NASDAQ: NVDA) next-generation Blackwell architecture is so robust that the chipmaker has increased its Blackwell orders at its primary semiconductor contract manufacturer Taiwan Semiconductor Manufacturing (NYSE: TSM) , or TSMC for short, by 25%.
Let's take a closer look at the demand for Blackwell chips and the impact it could have on both Nvidia and TSMC.
A report from Taiwan's Economic Daily News indicates that TSMC is soon about to start Blackwell GPU production using its 4-nanometer technology and that due to customer demand, Nvidia increased its order by 25%. The publication also states that demand for Nvidia terminal server cabinets also surged, with shipments now expected to rise to 60,000 units, up from a prior estimate of 40,000. Most of the terminal shipments are expected to be Nvidia's GB200 NVL36 model, which includes 36 GB200 Superchips, 18 Grace CPUs, and 36 enhanced B200 GPUs, at a cost of around $1.8 million.
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Blackwell Demand to Benefit Both Nvidia and Taiwan Semiconductor. Is It Time to Buy Both Stocks?