Deciphering the Boost in Taiwan Semiconductor Stock Deciphering the Boost in Taiwan Semiconductor Stock

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By Ronald Tech

The trajectory of Taiwan Semiconductor Manufacturing Co TSM stock traded higher Thursday owing to Nvidia Corp’s NVDA upbeat quarterly results and guidance pointing towards the enduring dominance of artificial intelligence. Unraveling its core functionalities, TSMC is a linchpin in Nvidia’s supply chain.

Nvidia’s fourth-quarter revenue of $22.10 billion, surging by 265% compared to last year, surpassed the Street estimate of $20.62 billion, underpinning the intense market reception for the company.

The adjusted EPS of $5.16 breezed past the Street consensus estimate of $4.64, bolstering investor confidence in both Nvidia and its key suppliers.

Additionally, Nvidia’s projection for first-quarter revenue to be in the vicinity of $24.0 billion, plus or minus 2%, soared past the Street consensus estimate of $22.16 billion, amplifying TSMC’s market prospects in tandem.

Parallelly, Analog Devices, Inc ADI unveiled a substantial partnership with TSMC to fortify long-term wafer capacity, fostering anticipations of a resolute upswing in TSMC’s market presence.

This collaboration, a testament to a 30-year relationship between ADI and TSMC, seeks to augment ADI’s capacity to supply pivotal technology for diverse platforms, leveraging JASM’s manufacturing capabilities.

The far-reaching implications of this partnership resonate in bolstering ADI’s hybrid manufacturing network, paving the way for more robust supply chains, greater responsiveness to market shifts, and escalated capacity for rapid scaling.

The semiconductor space is currently abuzz with significant developments. Notably, Microsoft Corp’s MSFT announced plans to leverage Intel Corp’s INTC 18A process to manufacture its chip design, underscoring a broader industry trend towards in-house chip production and multifaceted partnerships with chip designers.

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TSMC has long stood as the preeminent contract chip maker for major tech entities. However, the industry dynamic also entails an expanding landscape of in-house chip manufacturing and diversified partnerships with multiple chip designers.

Concurrently, TSMC stock has surged by 23.5% year-to-date, in stark contrast to Nvidia’s impressive 40% gain, emblematic of the noticeable traction and investor optimism in both companies.

Price Action: TSM shares traded higher by 4.33% at $130.77 on the last check Thursday, emblematic of the palpable market sentiment and optimisim surrounding TSMC’s stock.

Also Read: Samsung Divests ASML Stake to Bolster Chipmaking Capabilities Amid Global Tech Race

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

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