Home Nvidia’s shares surge to record high with TSMC acting as a catalyst

Nvidia’s shares surge to record high with TSMC acting as a catalyst

TLDR

  • Nvidia shares hit a record high, boosted by TSMC's strong third-quarter results.
  • TSMC's profits surged 54%, raising its market cap over $1 trillion, benefiting Nvidia.
  • Anticipation grows for Nvidia's next-gen 'Blackwell' AI chip

Nvidia witnessed its shares soar to a record high on Thursday as investors rallied around the resurgent chip sector, on the back of an upturn for TSMC, the world’s largest advanced chip producer. 

After a relative slump over the summer months, Nvidia’s stock jumped by more than 3% to a new intraday high of $140.89, exceeding the previous level of $140.76, set on June 20.

The day closed with shares up around 1% at $136.93. 

A catalyst for the spike was TSMC reporting better than expected third-quarter results, posting a 54% increase in profit, as the Taiwanese flag carrier saw its US-listed stock rise by more than 11%. 

This resulted in the company’s market capitalization exceeding $1 trillion.

With TSMC supplying Nvidia, as well as other tech giants such as Apple and AMD, its fortunes are often referred to as a bellwether for the wider industry. This was evidenced again on Thursday with the share price success.

“Nvidia is one of TSMC’s major customers, so there is a direct read-across to the American chip firm in the Taiwanese company’s results,” said Dan Coatsworth, investment analyst at AJ Bell, speaking to Reuters

‘Everybody wants to be first’ for the Blackwell chip

Nvidia has predicted a further positive outlook, with anticipation growing around its next-generation ‘Blackwell’ artificial intelligence chip.

In an interview with CNBC on October 3, Nvidia CEO Jensen Huang said the demand for its AI GPU is “insane,” with the company expecting to record billions of dollars worth of Blackwell revenue during the fourth quarter. 

With Blackwell expected to cost around $30,000 to $40,000 per unit, Huang said, “Everybody wants to have the most and everybody wants to be first.” 

Nvidia’s CEO has been at the forefront of securing a partnership with Foxconn, the world’s largest contract electronics manufacturer, to build ‘AI factories’ together. 

The other Taiwanese giant is set to construct a mammoth manufacturing facility for Nvidia’s GB200 superchips in Mexico, with the scale of the upcoming plant described by its chairman Young Liu as “very, very enormous”.

Image credit: Via Midjourney

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech, gambling and blockchain industries for major developments, new product and brand launches, AI breakthroughs, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Graeme Hanna
Tech Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.