AI chip stocks including Nvidia (NVDA) and Intel (INTC) soared on Thursday following TSMC. Announced 39% profit increase TSM stock soared to an all-time high when TSMC reported a net profit of NT$325.3 billion ($10.1 billion), which actually exceeded analysts’ expectations. TSM’s earnings and strong performance demonstrated the strength of demand for AI chips, which is currently driving semiconductor growth. Nvidia rose 1.2%, while Marvell Technology (MRVL) rose 1.3% and Broadcom (AVGO) rose 2.4%.
TSMC CEO CC Wei said the AI train remains on track and is likely to continue until 2026. “Recent developments in the AI market continue to be very positive. Therefore, our confidence in the AI megatrend is growing.”
NVDA has fallen 5% over the past week, but TSMC’s earnings appear to have triggered a rapid rebound. Meanwhile, Intel briefly rose 2%, but has since returned to $36. Nvidia recently received a price estimate upgrade from HSBC, which upgraded NVDA stock to Buy from Hold, citing the potential for resilient revenue growth.
AI stocks also skyrocketed in early October after OpenAI’s valuation exceeded $500 billion. The ChatGPT developer has now surpassed Elon Musk’s SpaceX to become the most valuable startup.
“This is not just a short-lived rally. TSMC’s disastrous quarter tells a clear story…This is no longer a cyclical story, it’s a structural story,” said Kate Lehman, chief market analyst at Avatrade. Wall Street likes tech stocks in 2025, especially those in the chip/AI industry. Year-to-date, Nvidia is up over 35% and TSMC is up over 50%. Looking ahead, TSMC expects fourth-quarter sales to be between $32.2 billion and $33.4 billion, with gross margins between 59% and 61%. If these expectations are met, Taiwan Semiconductor’s stock price could rise further by the end of this year.
