Nvidia Shares Climb 4% to $140.89 as TSMC Boosts Annual Revenue Growth Forecast Amid Strong AI Chip Demand

Nvidia's shares climbed 4% to a peak of $140.89 amid strong demand for AI chips.

Introduction

Nvidia shares soared nearly 4% on Friday, reaching a high of $140.89, before settling 2% higher during afternoon trading. The surge comes as Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, raised its annual revenue growth forecast. The revised outlook highlights increasing demand for AI chips, driving growth across the semiconductor industry.

Both Nvidia and TSMC have become central players in the AI-driven semiconductor market. Nvidia’s leadership in graphics processing units (GPUs) and TSMC’s manufacturing expertise offer insights into how AI-related technologies are reshaping the sector.

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Key Highlights

  1. Nvidia Stock Performance: Shares rose 4% to $140.89 before ending the day up 2% in afternoon trading.
  2. TSMC’s Revenue Forecast: TSMC projects mid-teen percentage growth for 2024, driven by AI-related demand.
  3. AI as Growth Driver: Demand for AI chips accelerate investments and production capacity in both Nvidia and TSMC.
  4. Industry Impact: The positive outlook has broad implications for chipmakers relying on advanced nodes and AI technologies.
  5. Market Trends: Increased investments in AI infrastructure continue to fuel market growth, benefiting suppliers across the value chain.

Nvidia’s Stock Surge Reflects AI Optimism

Nvidia stock shares rally reflects the company’s strong positioning in the AI ecosystem. The stock climbed 4% during intraday trading to hit $140.89, with investors responding positively to TSMC’s upbeat revenue forecast.

Nvidia has capitalized on the growing demand for AI hardware, with its GPUs being integral to training and deploying machine learning models.

After peaking, Nvidia’s shares eventually settled at a 2% gain by the close of the trading session. This reflects a broader investor sentiment favoring companies at the forefront of AI technologies.

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TSMC Raises 2024 Revenue Forecast

TSMC revised its revenue forecast for 2024, projecting mid-teen percentage growth, largely driven by AI chip demand.

The semiconductor giant supplies advanced chips to Nvidia and other companies leading the AI race. TSMC’s optimism signals sustained demand for high-performance chips used in data centers, autonomous vehicles, and AI systems.

We expect stronger growth in the second half of the year, primarily from AI-related applications,” TSMC said in its latest earnings report.

This announcement comes after the company initially adopted a cautious tone earlier this year, citing weaker demand in consumer electronics.

AI Chips as the Key Growth Catalyst

The demand for AI chips is transforming the semiconductor industry, shifting the focus from traditional markets like smartphones and PCs to AI infrastructure.

Nvidia’s GPUs, such as the H100 and A100, are being deployed in hyperscale data centers, driving the next wave of AI advancements.

TSMC, on the other hand, plays a crucial role in fabricating these AI chips using its cutting-edge 5nm and 4nm nodes.

Nvidia remains one of TSMC’s key clients, with the latter scaling its production to meet surging demand for AI accelerators.

Other companies, including AMD and Google, are also increasing investments in AI chips, further validating the sector’s long-term potential.

Market Outlook and Broader Industry Impact

The semiconductor market is witnessing a shift in growth patterns, with AI and data center chips driving future demand.

As TSMC raises its revenue outlook, the positive sentiment extends to other chipmakers, including AMD, Qualcomm, and Intel.

These companies are aligning their strategies toward AI-focused products to capitalize on the growing trend.

Nvidia’s success also highlights how companies developing AI hardware are better positioned to weather global economic uncertainties.

With governments and enterprises investing heavily in AI infrastructure, the demand for advanced semiconductors is expected to remain strong in the coming years.

Conclusion

Nvidia’s stock rally and TSMC’s upgraded revenue forecast reflect the growing significance of AI chips in shaping the semiconductor industry.

As Nvidia continues to deliver cutting-edge GPUs, and TSMC expands its manufacturing capabilities, both companies are well-positioned to benefit from the AI boom.

With AI driving long-term growth, the semiconductor industry is undergoing a transformation, presenting new opportunities for innovation and market expansion.

Investors will continue to monitor developments in this space as AI technologies become more central to future growth.

Kumar Priyadarshi
Kumar Priyadarshi

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL).

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