Nvidia Hits Record High As TSMC's Strong Sales Forecast Boosts Chip Stocks.
The chip giant Nvidia’s shares reached an all-time high on Thursday driven by Taiwan Semiconductor Manufacturing Co.’s (TSMC) optimistic sales forecast. TSMC which is the world’s largest contract chipmaker predicts a monumental increase in annual revenue growth with AI chips accounting for a substantial portion of its revenue. As per TSMC, the forecast reinforced investor confidence in chipmakers whose market values have skyrocketed due to Big Tech’s surge in chip spending and TSMC’s U.S.-listed shares rose over 11% valuing the company at over $1 trillion.
Also, read| Nvidia’s New AI Chip Delay May Affect Google, Meta And Other Giants: Report
Nvidia which is a major TSMC customer rose almost 4% to a record high of $140.89 and other chipmakers including AMD, Broadcom, Qualcomm and Micron also saw gains ranging from 1% to 3.6%. Intel’s shares rose 1% despite struggling to challenge TSMC in advanced contract manufacturing.
According to Dan Coatsworth, investment analyst at AJ Bell, Nvidia is one of TSMC’s major customers, so there’s a direct read-across to the American chip firm in the Taiwanese company’s results and TSMC’s outlook suggests strong demand for AI-related business and smartphones indicating the chip sector still has momentum. As per TSMC, the U.S.-listed shares have doubled this year while Nvidia has surged 180% and it was sad that the investors are pouring billions into chip stocks amid Wall Street’s booming picks-and-shovels trade.
Early in September, Nvidia CEO Jensen Huang’s wealth toppled to record loss after a fall in the chip stock and also as a result of the antitrust report sent to the tech firm summoned with a subpoena by the US Justice Department (DOJ). Huang’s net worth crumbled to a ballpark of $94.9 billion losing $10 billion. Bloomberg Billionaire Index tracked that it was the highest dollar plunge in a day for him and this dollar drop followed a 9.5% fall in the shares of Huang.
Also, read| Nvidia CEO Jensen Huang’s Net Worth Plunges $10 Billion In Record Loss
