Nvidia Faces CoWoS Capacity Crunch as Next Split Needs 100%-200% Rally
TSMC’s CoWoS packaging capacity is in high demand from Nvidia; MediaTek hires exec Douglas Yu to expand AI chip packaging for multibillion-dollar ASIC revenue by 2027. Nvidia has executed six stock splits totaling 480-for-1 since 2000 and needs a 100%–200% rally to trigger its split at a $4.8 trillion valuation.
1. CoWoS Packaging Demand
TSMC’s CoWoS capacity remains oversubscribed, with Nvidia and major cloud providers vying for allocations; potential bottlenecks could delay GPU deliveries and cap near-term revenue growth.
2. MediaTek Executive Hire
MediaTek appoints former TSMC executive Douglas Yu as part-time adviser to steer advanced chip packaging R&D and investment strategy, aiming to secure CoWoS slots and drive multibillion-dollar AI ASIC revenue by 2027.
3. Stock Split History and Outlook
Nvidia has conducted six stock splits since 2000 for a cumulative 480-for-1 ratio. At a $4.8 trillion market cap and roughly $200 share price, it would require a 100%–200% increase to warrant its next split, likely several years out.
4. Competitive Landscape
Marvell secured a $2 billion strategic investment from Nvidia for data center networking silicon, Amazon’s custom chips reached a $20 billion run rate, and Navitas faces analyst targets implying a 55% downside, intensifying pressure on Nvidia’s AI chip supremacy.