: TSMC stock rides Nvidia’s AI wave to best week in more than a year

by | May 26, 2023 | Stock Market

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. TSM
shares rose 12% Thursday as Nvidia Corp.’s stock
soared in response to news of a wave on expected sales of chips used for generative artificial intelligence, then added another 2.2% Friday. The stock finished the week up 11.5%, the best percentage gain in a week since the one ending Jan. 14, 2022.

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. Read: Nvidia stock soars toward all-time high as record revenue forecast backed by ‘killer app’ of AI 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 N …

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