NVIDIA Could Feel The Heat As Iran Strikes Disrupt Helium Supply, Warns Analyst

• The Persian Gulf conflict has disrupted natural gas supply, including helium. 
• The Taiwan Semiconductor Manufacturing Company, which manufactures advanced chips for NVIDIA and other tech giants, relies heavily on helium in its semiconductor production.
• Iranian strikes on gas facilities in Qatar are reportedly adding pressure to helium-linked supply chains, raising risks for global tech output.

Independent researcher Shanaka Anslem Perera, who previously said Nvidia (NVDA) was “becoming the largest accounting fraud in technology history," has now warned that the Middle East conflict could impact AI chips.

On Sunday, Perera explained that the ongoing conflict could disrupt both energy and helium supplies, warning that Taiwan Semiconductor Manufacturing Company (TSMC) manufactures “90 percent of the world’s most advanced logic chips on an island that imports 97 percent of its energy,” and “one-third of its LNG comes from the Middle East.” Perara added, "The war in the Persian Gulf just put the future of artificial intelligence on an 11-day clock that nobody in Silicon Valley is counting."

Qatar’s Ras Laffan complex produced one-third of the global helium supply before it shut down due to Iranian strikes. The risk of any sustained disruption to helium supply is particularly crucial for TSMC because it produces the majority of the world’s most advanced chips for companies like Nvidia (NVDA), Apple (AAPL), and AMD (AMD). Helium is used to cool and stabilize extreme ultraviolet (EUV) lithography systems used in manufacturing processors. 

NVIDIA was trading higher by 1.7% after hours, and the stock closed at $172.70 on Friday. NVIDIA stock declined 7.39% year to date. On Stocktwits, retail sentiment around NVIDIA remained in ‘bullish’ territory, with chatter levels ‘low’ over the past day.

Iran Strikes Add Pressure to Helium Supply

The strikes on gas infrastructure in Qatar last week reportedly came after earlier attacks on Iran’s energy sector, particularly the South Pars gas field, the country’s largest and most strategic source of natural gas. Iranian officials had warned that any attempt to target its economic infrastructure would be met with reciprocal measures across the region. 

According to CNBC, a research note from Bank of America (BofA) estimated that helium prices had surged by 40%. Phil Kornbluth, the President of Kornbluth Helium Consulting, also told CNBC that helium prices were up by 70% to 100% in certain cases.

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