What's Going On With Nvidia Stock On Friday?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 18 2024
0mins
Should l Buy TSM?
Source: Benzinga
Nvidia Blackwell Chip Delay: Nvidia's Blackwell chips will not be available until early 2025, impacting major clients like Amazon Web Services and Dell Technologies, which are awaiting bulk production for their data centers. Despite the delays, Nvidia's CEO remains optimistic about demand and revenue projections.
Market Dynamics and Competition: Amazon has partnered with Databricks to offer affordable AI development tools using its Trainium chips, challenging Nvidia's market dominance. Meanwhile, Nvidia's stock has surged over 227% in the past year, driven by high demand for AI-related technologies.
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Analyst Views on TSM
Wall Street analysts forecast TSM stock price to fall
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 368.100
Low
63.24
Averages
313.46
High
390.00
Current: 368.100
Low
63.24
Averages
313.46
High
390.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Growth Momentum: In 2025, TSMC achieved a 36% revenue increase to $122.4 billion, with January 2026 revenue growing nearly 37% year-over-year, indicating potential to exceed its 30% growth target and boosting investor confidence.
- AI Chip Market Outlook: RBC Capital Markets projects AI chip sales to rise from $220 billion last year to over $550 billion by 2028, placing TSMC in a prime position to capitalize on this lucrative market as the preferred foundry for AI chip designs.
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- Strong Sales Expectations: Analysts anticipate Nvidia will achieve approximately $65.6 billion in sales for fiscal Q4 2026, a 67% year-over-year increase, indicating robust demand for its AI hardware despite high investor expectations.
- Sustained Competitive Advantage: Nvidia's GPUs face virtually no competition in AI-accelerated data centers, with CEO Jensen Huang aggressively investing in R&D to maintain compute superiority, planning to introduce advanced GPUs annually.
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- Market Dominance: TSMC controls 99% of the foundry market for AI server compute and custom AI processors, positioning itself as a critical technology enabler for emerging AI giants like Anthropic, thereby solidifying its leadership in the semiconductor industry.
- Revenue Growth Momentum: In 2025, TSMC achieved a 36% revenue increase to $122.4 billion, with January 2026 revenue growing nearly 37% year-over-year, indicating potential to exceed its 30% growth target and boosting investor confidence.
- AI Chip Market Outlook: RBC Capital Markets projects AI chip sales to rise from $220 billion last year to over $550 billion by 2028, placing TSMC in a prime position to capitalize on this lucrative market as the preferred foundry for AI chip designs.
- Investment Appeal: TSMC's forward earnings multiple of 26 aligns closely with the Nasdaq-100 index, and its earnings are expected to grow faster than the broader market, suggesting that investors are unlikely to go wrong with this semiconductor giant.
See More
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- Tech Stock Rotation: The rotation out of technology stocks in 2026 has garnered attention, and despite market volatility, investors are presented with opportunities to acquire high-quality stocks at attractive valuations, potentially capitalizing on future gains.
- Long-Term Investment Confidence: Analysts express optimism about eight stocks that have experienced fluctuations, believing they still possess the ability to generate profits for shareholders in the long run, reflecting a strong market confidence.
- Amazon's Investment Potential: Among the stocks discussed, Amazon (NASDAQ:AMZN) is highlighted as a favorite investment choice, as its long-term growth prospects continue to attract investor interest despite facing challenges.
- Video Content Promotion: The video, published on January 10, 2026, aims to engage viewers to subscribe to the channel and learn more about investment opportunities, while also providing a special offer link to enhance viewer participation.
See More
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- Market Value Surge: Since the end of 2022, Nvidia has added nearly $4.2 trillion in market cap, becoming the most valuable company on Wall Street, reflecting its dominant position and market confidence in the AI sector.
- Strong Sales Expectations: Analysts anticipate Nvidia will achieve approximately $65.6 billion in sales for fiscal Q4 2026, a 67% year-over-year increase, indicating robust demand for its AI hardware despite high investor expectations.
- Sustained Competitive Advantage: Nvidia's GPUs face virtually no competition in AI-accelerated data centers, with CEO Jensen Huang aggressively investing in R&D to maintain compute superiority, planning to introduce advanced GPUs annually.
- Pricing Power Challenges: As GPU supply improves, Nvidia's pricing power may weaken; although its GAAP gross margin remains above 70%, future sales growth could be impacted by internal competition and market dynamics.
See More
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- Spending Overview: The five largest hyperscalers, including Amazon, Alphabet, Microsoft, Meta, and Oracle, are projected to budget over $700 billion by 2026, reflecting a strong demand for building AI data centers and driving growth in related sectors.
- Capital Expenditure Growth: Amazon plans to spend $200 billion in 2026, a 56% increase from $128.3 billion in 2025; Alphabet's spending is expected to reach $180 billion, with a staggering 97% year-over-year growth, significantly enhancing its market competitiveness.
- Surge in Chip Demand: These five companies are set to spend over $450 billion on GPUs, CPUs, and other AI accelerator chips in 2026, creating substantial market opportunities for chipmakers, particularly for leading firms like Taiwan Semiconductor Manufacturing Company (TSMC).
- Long-Term Growth Outlook: TSMC has raised its annual revenue growth forecast for 2024-2029 from 20% to 25%, and with the rapid increase in AI chip demand, the potential for gross margin and profit growth in the coming years is substantial, making it a valuable investment despite its stock reaching all-time highs.
See More
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- Momentum Surge: The company's momentum score increased from 89.27 to 92.92, placing it in the top 10% of all stocks tracked by Benzinga Edge, indicating strong price strength and volatility, which enhances market confidence in its future performance.
- Economic Growth Boost: Taiwan's economy experienced a 70% surge in exports in January, the fastest pace in 16 years, driven almost entirely by AI hardware, further solidifying TSM's market position and profitability.
- Bullish Wall Street Outlook: DA Davidson recently initiated coverage on TSM with a Buy rating and a $450 price target, suggesting significant upside from current levels, reflecting strong market confidence in its future growth.
- Strong Financial Performance: TSM's stock has risen 14.63% year-to-date, while the Nasdaq 100 was down 1.88% during the same period, demonstrating its robust performance amid increased Big Tech spending, further solidifying its leadership in the high-end node market.
See More
S&P 500 Index Achieves Three Years of Strong Performance
- Market Performance Review: The S&P 500 has achieved double-digit gains for three consecutive years, reflecting the ongoing bull market that has attracted significant investment into growth stocks like AI and quantum computing, although overall market momentum has recently slowed.
- Interest Rate Policy Impact: Following the Fed's interest rate cuts that began in 2024, the recent decision to hold rates steady has heightened investor concerns over uncertainty, leading to diminished confidence in tech stocks, despite strong earnings reports from companies like Meta and Taiwan Semiconductor.
- Valuation Level Warning: The S&P 500's Shiller CAPE ratio has surpassed 39, a level only reached once before, just prior to the dot-com bubble burst, indicating that current market valuations are high and may signal potential future correction risks.
- Historical Trend Analysis: Historical data shows that the S&P 500 typically declines after reaching peak valuations, although such declines are not always long-lasting; investors should focus on a long-term strategy of holding quality stocks to navigate short-term market fluctuations.
See More
