Nvidia (NVDA) CEO Jensen Huang said a design flaw affecting the company’s new Blackwell artificial intelligence (AI) chip has been fixed. The company acknowledged that this was an issue on its side, not with long-time foundry partner Taiwan Semiconductor Manufacturing Company (TSM). Patrick Moorhead, founder, CEO, and chief analyst at Moor Insights & Strategy, joins Julie Hyman and Josh Lipton to talk about market dominance and unpack what this news means for Nvidia and the chip industry.
“It’s funny, if you recall, there was no problem, and then there was a problem, and then Nvidia came out and talked about it a little bit. I was on the show, and I really said, “Whatever happens, unless there’s a delay of six months or a year, they’re probably going to buy the lower performance version from Nvidia.” But what this does is it’s a potential problem. I think all possibilities for this to occur will be closed. So they’re already saying Blackwell has sold next year’s share,” Moorhead told Yahoo Finance.
He added: “This is a classic accusation between Nvidia and TSM. It’s an old one. But what’s interesting is how it spilled over into the public dialogue. “I don’t think this is a positive thing for TSMC,” Moorhead said, adding that the negative sentiment toward TSMC based on U.S. investigative reporting on Nvidia’s delays and its dealings with Chinese company Huawei is likely to be negative.・He stated that there is a possibility of benefiting competitors such as service companies. TSMC says there is no such investigation.
“This is just another chapter in the drama surrounding the chip industry,” Moorhead said, adding, “NVIDIA is going to lose market share on a percentage basis.” They will lose market share to AMD (AMD). It will probably lose market share to Intel (in 2026). The designs created by Broadcom (AVGO) and Marvell (MRVL) will then be incorporated into hyperscalers. However, the market is growing so fast that it won’t have much impact on NVIDIA and its stock price. ”
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This post was written by Naomi Buchanan.
