Nvidia Corporation (NVDA) is seeing heavy demand for its next-generation Blackwell chips and is now asking for more manufacturing support from Taiwan Semiconductor Manufacturing Company (TSM). The request covers not only graphics processors but also other types of chips that support Nvidia’s growing product lineup.
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At a recent event in Taiwan, Nvidia Chief Executive Jensen Huang said that the company’s new Blackwell platform includes more than just GPUs. It also includes CPUs, networking parts, and switches. This broad scope means Nvidia needs more chips from TSMC to keep up with orders. TSMC Chief Executive C.C. Wei confirmed that Nvidia has asked for more wafer capacity, though he did not share how many chips the company needs.
So far, Nvidia is continuing to see high interest from its global clients. In October, it became the first company to reach a $5 trillion market value, and TSMC’s executive praised Huang as a key figure in that success. In the meantime, NVDA shares rose slightly on Friday, closing at $188.15.
Memory Supply Gets Tight as AI Workloads Grow
At the same time, Nvidia is also facing pressure on the memory side. The company works closely with three major suppliers: SK Hynix, Samsung Electronics (SSNLF), and Micron Technology (MU). According to Huang, all three companies are raising capacity and have sent Nvidia their most advanced chip samples.
Still, supply is expected to stay tight. SK Hynix recently said it has already sold out all its chip production for next year. The company plans to increase investment to meet longer-term demand, which it expects to keep rising due to AI growth. Samsung also said it is in close talks with Nvidia to supply its next round of high-bandwidth memory, known as HBM4.
When asked about memory prices, Huang said that it is up to each supplier to decide how they want to price their products. While he did not comment on future prices, he noted that demand is strong across many parts of the chip market.
No Current Sales of Blackwell Chips to China
Finally, Nvidia is not currently selling Blackwell chips to China. The U.S. government has placed limits on such sales to prevent advanced chips from reaching China’s military or AI developers. Huang said there are no active talks to change that policy for now.
Taken together, Nvidia is working with both TSMC and major memory makers to scale up its chip supply. The company says this effort is needed to meet the needs of AI developers around the world. With orders rising, it is relying more on key partners to keep up with the pace of global demand.
Is Nvidia Stock a Buy?
Nvidia continues to hold the Street’s endorsement with a Strong Buy consensus rating. The average NVDA price target is $237.35, implying a 26.15% upside from the current price.
