Chipmaker Taiwan Semiconductor Manufacturing Company (TSM) was in focus after Nvidia (NVDA) CEO Jensen Huang praised it as a “world-class foundry” during the announcement of Nvidia’s $5 billion investment in Intel (INTC). The remarks came as Nvidia and Intel unveiled plans to build custom CPUs for data centers and PCs, combining Intel’s x86 CPUs with Nvidia’s GPUs through NVLink technology.
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Despite Intel’s foundry ambitions, both companies made it clear that TSMC is still essential. Huang called it a “world-class foundry” that supports a wide range of clients and added, “You can’t overstate the magic that is TSMC.” Intel CEO Lip-Bu Tan agreed, saying that although Intel is still developing its 14A and 18A process nodes, the near-term work with Nvidia will depend on TSMC’s manufacturing strength.
TSMC stock rose 2% on the news, with investors betting that Nvidia and Intel will keep driving orders to the foundry..
Analysts See TSMC Keeping Its Lead
The comments underline TSMC’s strong position in advanced chipmaking. Analysts said that while Intel may pick up some foundry work over time, TSMC is still the clear leader in high-end production. Nvidia’s continued reliance on TSMC helps secure steady demand, especially for GPUs and AI chips that require advanced production.
Jonathan Weber, Investing Group Leader for Cash Flow Club, noted that while Intel may add more output in the future, “TSM remains very well positioned and the clear manufacturing leader for the time being.”
For investors, Huang’s praise is a reminder that even as Intel works to regain ground, TSMC still holds the top capacity for AI and data center chips.
Is TSM Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSMC stock based on six Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSM price target of $280.57 per share implies 4.4% upside potential.
