NVIDIA Corporation's (NVDA.US) stock price plunge is due to rumors of order cuts? Guo Mingchi supports: it is a market misunderstanding.

Last week, although NVIDIA Corporation's (NVDA.US) financial report exceeded market expectations, concerns in the market persisted. Recently, there were rumors from the supply chain that industry insiders were skeptical about the reduction of orders for NVIDIA Corporation's CoWoS. There were also reports that as NVIDIA Corporation's Hopper GPU neared the end of its lifecycle, its advanced packaging orders might gradually decrease. On Monday, influenced by the news, NVIDIA Corporation's stock price fell by as much as 8.69%, reflecting market concerns about fluctuations in demand for artificial intelligence. Previously, NVIDIA Corporation's foundry Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR had considered outsourcing orders for CoWoS-S/R due to capacity constraints, but it ultimately did not materialize. Now, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is reportedly no longer under pressure, leading industry insiders to expect a decrease in packaging orders. The news pointed out that NVIDIA Corporation's CoWoS wafer orders at Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR had decreased from over 400,000 to 380,000. CoWoS technology is crucial for NVIDIA Corporation's AI chip production as it provides higher data transfer rates and lower power consumption, making it ideal for high-performance, high-efficiency computing applications like HPC and AI. However, renowned tech analyst Ming-Chi Kuo pointed out that these rumors are likely just a misinterpretation of NVIDIA Corporation's production strategy by the market. New Production Line Kuo stated that some market participants overestimated Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's CoWoS capacity and misunderstood NVIDIA Corporation's quick transition from the B200 series GPU to the B300 series GPU as a sign of order reduction. He added that NVIDIA Corporation's CoWoS orders at Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR this year are around 370,000 wafers, and Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's CoWoS expansion plan remains unchanged, aiming to produce around 70,000 wafers per month by December 2025. He emphasized that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR always takes a highly cautious approach to capacity expansion, and unless there is a dramatic industry turnaround in the short term, the market is unlikely to see NVIDIA Corporation significantly reduce orders. NVIDIA Corporation CEO Jensen Huang later refuted claims that they would reduce CoWoS packaging orders, attributing the numerical changes to a shift towards Blackwell production. Because Blackwell uses CoWoS-L technology, it means that the industry is transitioning to a new production line, leading to a decrease in output. This article is a reprint from CaiLian Press, edited by GMTEight: Lifu.