NVIDIA's $150 Billion Investment Boosts TSMC's Market Position
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: stocktwits
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) shares have reached a 52-week high, reflecting a 3.01% increase in pre-market trading. This surge is attributed to NVIDIA's announcement of a substantial investment plan in Taiwan, which is expected to enhance TSMC's production capabilities and market leadership.
NVIDIA's CEO Jensen Huang revealed plans to invest up to $150 billion in Taiwan to expand chipmaking capacity, which will provide additional resources to TSMC and other manufacturers. This investment is anticipated to solidify TSMC's position in the global semiconductor market, especially as demand for high-performance computing continues to rise. Despite some bearish sentiment on Stocktwits, TSMC's stock price increase indicates strong investor confidence in the company's future performance.
The implications of NVIDIA's investment are significant for TSMC, as it not only reinforces the company's market dominance but also highlights the growing importance of AI technologies in driving revenue growth. With TSMC's strong financial performance and strategic partnerships, the company is well-positioned to capitalize on the increasing demand for advanced semiconductor solutions.
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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: 424.860
Low
63.24
Averages
313.46
High
390.00
Current: 424.860
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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- Positive Stock Reaction: Following the announcement, TSMC shares rose 5% in premarket trading on Wednesday, reflecting investor optimism about the company's future growth potential, especially amid surging demand for artificial intelligence technologies.
- Market Capitalization Growth: TSMC's success has propelled Taiwan's market capitalization to $4.95 trillion, surpassing India's $4.92 trillion, highlighting Taiwan's significant position in the global stock market and further solidifying TSMC's status as an industry leader.
- Dividend Distribution Decision: TSMC's board approved a quarterly dividend of NT$6.00003573 per common share, set to be paid on July 9, which not only enhances shareholder returns but also reflects the company's robust financial health.
See More
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- Strategic Partnerships: Nvidia's collaboration with Uber will power a robotaxi fleet across nearly 30 cities and 4 continents by 2028, which not only strengthens its market position in physical AI but also lays the groundwork for future revenue growth.
- Expansive Market Outlook: Market research firm Counterpoint estimates that shipments of physical AI devices could reach 145 million units cumulatively between 2025 and 2035, primarily driven by robots, autonomous vehicles, and drones, providing Nvidia with significant market opportunities.
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- Risks and Opportunities: While Cerebras has yet to achieve operational profitability and faces fierce competition from Nvidia, its technological edge with oversized chips and the growing demand for computing power may allow it to carve out market share, attracting interest from risk-tolerant investors.
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