In the wake of TSMC’s earnings call last week, where positive news and rosy outlook were announced, the company’s stock shot up by NT$38 the following day. And as if on cue, Jensen Huang, the founder of Nvidia, a major client of TSMC, arrived in Taiwan over the weekend and was spotted at Taipei’s Ningxia Night Market. It’s reported that the Taiwanese-American tycoon is in town for a TSMC function. Observers say Huang’s visit likely has to do with keeping a step ahead of its competitor AMD, another TSMC client.

Every time Jensen Huang is in Taiwan, he visits a night market. But the reason for his visit this time is for far more than just an oyster omelet. He’s reportedly here for TSMC’s partners conference on advanced packaging supply chain. Huang’s being here in person is a reflection of how he values his company’s partnership with TSMC.

Nobunaga Chai
Photonics Industry and Technology Development Assoc.
The main battlefield of AI will definitely take place in chips. Nvidia uses the B100 of TSMC’s 3 nanometer process with its related server assembly businesses. It will be able to grasp the relevant progress and take over the A100 and H100 chips to maintain Nvidia’s lead in market share so as to prevent AMD from expanding its market share.

This expert believes that Jensen Huang is in Taiwan to solidify his company’s position, because there’s a new player in this year’s AI ​​war: Nvidia’s competitor, AMD, which entered the fray last year and will end up redistributing the market share. However, Nvidia and AMD are both major customers of TSMC. They use 3 nanometer and 5 nanometer processes, respectively, and TSMC has benefited from both. Taiwan’s star chipmaker is looking at a first quarter revenue of $18 billion to $18.8 billion US dollars, which will be a new first-quarter high, with a gross margin of 52% to 54%.

C. C. Wei
CEO, TSMC
We are confident to outperform the foundry industry growth. We expect our business to grown quarter over quarter and expect to increase by low to mid 20% in U.S. dollar terms.

Much good news was announced at TSMC’s earnings call last Thursday. The company’s financial forecast, the demand for AI, and the progress of 2-nanometer chips all boosted investors’ confidence. The next day, its share price shot up by NT$38 to close at NT$626. Overall, foreign investors had picked up more than NT$80.1 billion of Taiwanese stocks, resulting in the second largest net purchase in the bourse’s history. This included a large purchase of 110,000 shares of TSMC stock.

As the Taiex opens Monday morning, all eyes will be on AI stocks to see if they’ll continue to rally the market.

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