The NVIDIA GPU 2025 Forecast was raised at Mizuho by Investing.com

Investing.com — Asia-based semiconductor and hardware analysts Mizuho raised their 2025 forecast for Nvidia’s GPU AI units, anticipating stronger-than-expected growth driven by expanded production capacity.

Analysts adjusted Nvidia’s total AI GPU shipments in 2025 by 8-10% higher than its July 2024 estimates, citing key supply chain improvements, particularly in CoWoS (Chip on Wafer on Substrate) technology.

The report points out that Nvidia (NASDAQ: ) will ship between 6.5 and 7 million units in 2025, including 3 million units of CoWoS-S GPUs. These will mostly include Hopper and Blackwell models, with CoWoS-S achieving over 99% efficiency.

In addition, CoWoS-L, another Nvidia process, is expected to produce between 3.8 and 4 million units, with a focus on supporting high-demand GB200 server racks, allocating 80-90% of production to this line of products.

Mizuho’s revised forecast comes as Taiwan Semiconductor Manufacturing (NYSE: ), Nvidia’s key manufacturing partner, doubles its annual wafer capacity.

“We expect CoWoS supply tightness to continue through 2025, but project a gradual improvement with an estimated annual capacity of over 650,000 wafers coming on stream at TSMC next year (2x y/y)” , the note says.

“In addition to increasing front-end (chip-on-wafer) capacity, some back-end (on-substrate) processes are expected to be outsourced to Advanced Semiconductor Engineering (ASE), and the supply-demand situation is expected to gradually . improve.”

Analysts believe that investors’ concerns about potential delays in Blackwell’s GPU launch have been “overblown”, noting that both TSMC and SK Hynix Inc (KS:) are on track for sales growth following the release of the Blackwell GPU in the fourth quarter of 2024.

Overall, Mizuho’s hardware and semiconductor analysts in Asia do not expect delays from semiconductors, including AI GPUs and ASICs, to affect AI server production in 2025. They also noted that vendors of Taiwanese back-end equipment such as Allring Tech are likely to benefit from TSMC’s efforts to locate suppliers.