Why Nvidia Stock Is Getting a Boost From TSMC Earnings

Nvidia CEO Jensen Huang has built the company into the preferred provider of artificial-intelligence chips. (Photo by I-HWA CHENG/AFP via Getty Images)

Key Points

• Nvidia stock rose 1.4% in premarket trading after TSMC reported strong earnings driven by AI processor demand.
• TSMC increased its 2025 revenue growth guidance to a mid-30% range, citing stronger-than-expected AI demand.
• Firmus Technologies is partnering with Nvidia to build AI factories with up to 1.6 gigawatts energy capacity by 2028.

Nvidia stock was rising on Thursday after blowout results from its supplier Taiwan Semiconductor Manufacturing. The figures are another sign the artificial-intelligence trend is rolling on.

In midmorning trading, Nvidia stock gained 1.3%. The S&P 500 and the Dow Jones Industrial Average were up 0.3% and 0.1%, respectively.

TSMC reported a surge in quarterly earnings because of high demand for AI processors and raised this year’s revenue growth guidance to a mid-30% range, up from 30% previously.

“AI demand is stronger than we thought three months ago,” TSMC Chairman C.C. Wei said in a call with analysts on Thursday.

The comments were taken as a positive for Nvidia, a major customer of TSMC, and other companies in the AI sector.

Also on Thursday, Australian start-up Firmus Technologies said it and Nvidia plan to build AI factories with an energy capacity of up to 1.6 gigawatts through 2028. The first stage involves an investment of 4.5 billion Australian dollars ($2.93 billion) and will use 18,500 of Nvidia’s GB300 graphics-processing units.

The stocks of other chip makers were mixed. Advanced Micro Devices was down 0.7% and Broadcom was up 1.3%.

Write to Adam Clark at adam.clark@barrons.com