There is no shortage of companies eager to create new AI systems using Nvidias superior chips, and the worlds largest publicly listed company is selling them as fast as its chip-making contractor TSMC can make them.
Nvidia forecast its slowest revenue growth in seven quarters on Wednesday, pushing its stock down 2.5 after hours, and said supply-chain constraints would lead to demand for its chips exceeding supply for several quarters in fiscal 2026.
Making these chips is hard, and a flaw that was found in one of its chips is not helping.
Nvidias new flagship chip, named Blackwell, is actually made up of multiple chips that have to be glued together in a complex process the chip industry calls advanced packaging. While TSMC is racing to expand capacity, packaging remains a bottleneck for Nvidia and other chip companies.
Blackwell adds more advanced packaging from TSMC than prior chips, which adds a wrinkle, said Ben Bajarin, CEO and principal analyst at research firm Creative Strategies. He expects Nvidia will have more demand than it can supply for all of 2025.
