Nvidia’s latest designs, leveraging a new Taiwan Semiconductor manufacturing process, have faced complications with specific models in the upcoming Blackwell family of data center chips, Financial Times cites familiar sources.

Analysts project $1 trillion in spending on data centers for AI over the next five years.

However, Wall Street’s anxiety about the sustainability of the AI boom has been rising. As a key AI beneficiary, analysts say Nvidia’s market value has dropped by about $750 billion since mid-June.

Hedge fund Elliott Management expressed concerns in a recent letter to investors, seen by the Financial Times. The broader semiconductor industry also remains jittery as the U.S. amplified its advanced semiconductor sanctions against China.

Taiwan Semiconductor stock gained 54% in the last 12 months.

Investors can gain exposure to Taiwan Semiconductor through iShares Semiconductor ETF (NASDAQ:SOXX) and First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV).

Price Action: TSM shares traded higher by 2.01% at $150.91 premarket at the last check on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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