Nvidia and its main supplier Taiwan Semiconductor Manufacturing Company are facing production challenges with the highly anticipated next generation of its most powerful artificial intelligence chips, threatening to delay shipments planned for this year.
Nvidia’s cutting-edge designs, which take advantage of a new TSMC manufacturing process, have caused complications with certain models in the forthcoming Blackwell family of data centre chips as it prepares for mass production, according to people familiar with the situation.
Amid a broader stock market sell-off on Monday, shares in Nvidia fell as much as 15 per cent in early trading in New York, while TSMC closed down 10 per cent on the Taiwan stock exchange, after The Information first reported the potential delays. By 12pm in New York, Nvidia’s fall had moderated to 6 per cent.