Nvidia’s GPUs Fuel CoWoS Capacity Crunch While $4.8T Market Cap Delays Split
Nvidia’s GPUs are driving unprecedented demand in TSMC’s CoWoS packaging, straining capacity as cloud providers scramble for supply. With a $4.8 trillion market capitalization and six stock splits since 2000 totaling 480-for-1, the share price must rally 100–200% to trigger another split, underpinned by $7 trillion in AI datacenter investments.
1. Surging CoWoS Demand
Nvidia’s high-performance GPUs have become a primary driver of demand for TSMC’s Chip on Wafer on Substrate (CoWoS) packaging, pushing utilization rates to record levels. Major cloud service providers and hyperscalers are locking in capacity months in advance to secure supply for their AI training clusters.
2. Stock Split History and Market Cap
Since its 1999 IPO, Nvidia has executed six stock splits amounting to a 480-for-1 ratio, most recently in 2021. At a $4.8 trillion market capitalization, the share price would need to increase by roughly 100–200% before the company’s split policy thresholds are met again.
3. AI Datacenter Investment
Global spending on AI datacenter infrastructure is projected to reach $7 trillion over the coming years, supporting robust long-term demand for Nvidia’s GPU accelerators. This investment trend underpins expectations for continued revenue growth and margin expansion as enterprises and cloud providers scale AI workloads.