NVIDIA (NVDA) CEO Jensen Huang said a design flaw affecting its new Blackwell artificial intelligence (AI) chip has been fixed. The chipmaker confirmed that this was an issue on its side rather than that of its long-time foundry partner, Taiwan Semiconductor Manufacturing Company (TSM). Patrick Moorhead, Founder, CEO and Chief Analyst of Moor Insights & Strategy, speaks with Julie Hyman And Josh Lipton on market dominance to explain what the news means for Nvidia and the chip industry.
“This one is interesting. If you remember, there was no problem, then there was a problem, and then Nvidia came out and talked about it a little bit. I was on the show and really said“Hey, no matter what, unless there’s a six month or a year delay, they’ll probably just buy the worst performing version from Nvidia.” And I think that closes the door to any potential issues that could have occurred. I mean, they already said that Blackwell sold for next year“Moorhead told Yahoo Finance.
He adds: “This is a classic criticism between Nvidia and TSM. It’s centuries old. What is interesting, however, is how this has carried over into the public dialogue. And I don’t think that’s a positive thing for TSMC. Moorhead said the negative sentiment around TSMC based on Nvidia’s delay and the reported A US investigation into relations with Chinese company Huawei could benefit competitors like Intel (INTC) Foundry services. TSMC said there is no such investigation.
“It’s just another chapter in the drama of the chip industry,” Moorhead says. He adds: “Nvidia is going to lose percentage market share. They are going to lose market share to AMD (AMD). They will probably lose market share in (2026) to Intel. And then to the designs made by Broadcom (AVGO) and Marvell (MRVL) that go into hyperscalers. But the market is growing so quickly that it won’t have much impact on Nvidia and its stock price. »
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This article was written by Naomi Buchanan.
