Nvidia Stock Hits Record High, Rises 4% on TSMC’s AI Growth Forecast

Nvidia reaches a new high, expanding nearly 4% on TSMC’s AI-driven outlook before leveling off at a 2% gain.

Nvidia stock hit a record high on Thursday as chip stocks in the U.S. went up. Investors became more confident in the demand for processors that power artificial intelligence (AI) applications after Taiwan Semiconductor Manufacturing Co. (TSMC) raised its sales estimate.

TSMC’s AI Chip Sales Drive Optimism

TSMC, the biggest contract chipmaker in the world, said it expects its yearly revenue to grow. Sales of AI chips will make up about 17% of its total revenue for the year. TSMC shares traded in the U.S. went up by more than 11% because of this positive outlook, which made the company’s market value go over $1 trillion.

Stock in Nvidia, a top AI chip maker and one of TSMC’s biggest buyers, rose almost 4% to a new high of $140.89. It went down a little later, but it was still up 2% in the afternoon. Aside from Micron, AMD, Broadcom, Qualcomm, and Qualcomm, other chip companies also saw gains of 1% to 3.6%.

“Nvidia is a key customer for TSMC, so the chipmaker’s strong results directly benefit the American company,” said Dan Coatsworth, an investment analyst at AJ Bell.

Intel’s shares went up 1%, even though the company has been trying to grow its chip manufacturing facilities to compete with TSMC. But experts say it will take Intel years to compete with TSMC in making new chips.