Nvidia Boosts CoWoS Capacity 76% for 2026, Joins $1.2B Casablanca AI Project
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NVIDIA announced a significant increase in its CoWoS packaging capacity, projecting 650,000 units for 2026 (up 76%) and 840,000 units for 2027 (up 29%), which will support millions of its Blackwell, Rubin, and Hopper GPUs. Additionally, the company is joining a $1.2 billion consortium to develop a 500 MW AI data center near Casablanca, utilizing its latest GPUs. The company also noted supply chain and energy risks related to its key supplier, TSMC. This news follows a period of strong revenue expectations and strategic partnerships, and the capacity increase directly addresses potential supply constraints that could limit NVIDIA's ability to meet the surging demand for its AI chips. The substantial increase in CoWoS packaging capacity is a critical positive development, as it directly enables NVIDIA to scale production of its high-demand GPUs, which has been a key bottleneck. The $1.2 billion investment in the Casablanca AI data center further expands NVIDIA's ecosystem and market presence in the EMEA region, securing future demand for its hardware and software. Traders will monitor the execution of these capacity expansions and the progress of the Casablanca AI data center, as well as any further updates on supply chain resilience and geopolitical risks.
At the time of this announcement, NVDA was trading at $178.15 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.3T. The 52-week trading range was $86.62 to $212.19. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Wiseek News.