Nvidia's Blackwell woes revealed 'drama' between chip partners
Nvidia (NVDA) CEO Jensen Huang has said a design flaw affecting its new Blackwell artificial intelligence (AI) chip has been fixed. The chipmaker confirmed it was an issue on its end rather than its long-time foundry partner Taiwan Semiconductor Manufacturing Company (TSM). Moor Insights & Strategy founder, CEO and chief analyst Patrick Moorhead sits down with Julie Hyman and Josh Lipton on Market Domination to break down what the news means for Nvidia and the chip space. “This one's an interesting one. If you recall, there wasn't an issue, then there was an issue, and then Nvidia came out and talked about it a little bit. I was on the show and really said, ‘Hey, regardless of what happens, unless it's a six-month or a one-year delay, they'll probably just buy the lower-performing version from Nvidia.’ And I think what this does, though, this closes the door on any potential issues that may have arisen. I mean, they already said that Blackwell sold out for the next year,” Moorhead tells Yahoo Finance. He adds, “This is classic finger-pointing between Nvidia and TSM. It's age-old. What is interesting, though, is how that spilled over into the public dialogue. And I don't think this is a positive thing for TSMC.” Moorhead said the negative sentiment around TSMC based on the Nvidia delay and the reported US investigation into dealings with Chinese company Huawei could benefit competitors like Intel (INTC) Foundry Services. TSMC says there is no such investigation. “It's just another chapter of the drama that goes with the chip industry," Moorhead says. He adds, "Nvidia will lose market share on a percentage basis. They're going to lose market share to AMD (AMD). They're going to lose market share likely in [2026] to Intel. And then to designs made by Broadcom (AVGO) and Marvell (MRVL) that go into the hyperscalers. But the market is growing so quickly that it won't have much of an impact on Nvidia and its stock price." To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Naomi Buchanan.
