U.S. shares of Taiwan Semiconductor Manufacturing Co. rode the wind behind Nvidia Corp.’s record revenue forecast to their best week in nearly a year and a half.
With a 22.4% gain month to date already, shares also aren’t far from their best month since January, when shares finished up 24.5%. That follows a 34.8% gain in November 2022.
In April, the Chip fabricator, or “fab” — industry parlance for the high-tech factories where billions of transistors are etched onto silicon wafers to make chips — trimmed its outlook but kept its capex forecast intact.
Wedbush analyst Matt Bryson who covers Nvidia, said he expects TSMC to get a “slight positive” from Nvidia. “TSMC certainly benefits from Nvidia’s success, but the absolute revenue contribution to TSMC is more modest given Nvidia’s elevated margins on its data center GPUs.”
Those elevated margins from data-center sales are expected to help Nvidia bounce back from a tough inventory year, Nvidia Chief Financial Officer Colette Kress told MarketWatch in an interview late Thursday.
Nvidia sells data-center chips to cloud service providers, or “hyperscalers,” such as Microsoft Corp.’s MSFT,
While considered the GPU leader in the data center, Nvidia still dukes it out with rival Advanced Micro Devices Inc. AMD,
TSM shares are up 38.6% year to date, while the PHLX Semiconductor Index SOX,