Nvidia Drives One-Third of S&P 500 EPS Growth, Commits $150B to TSMC
NVDA•Analysts forecast AI spending to drive half of S&P 500 EPS growth, with Nvidia securing roughly one-third of that boost this year. CEO Huang’s plan to spend $150 billion annually on TSMC capacity lifted TSMC shares to a 52-week high, underscoring robust demand for Nvidia’s AI chips.
1. Analysts Forecast Nvidia’s EPS Impact
Industry analysts project AI investment will fuel roughly half of S&P 500 EPS growth over the next two years, with Nvidia poised to capture about one-third of that gain in 2026. This highlights Nvidia’s dominant position in supplying GPUs and other processors critical to AI infrastructure.
2. $150B Annual TSMC Commitment
CEO Jensen Huang announced a plan to purchase approximately $150 billion of chips annually from TSMC, strengthening manufacturing capacity. This commitment propelled TSMC shares to a fresh 52-week high and signals confidence in sustained AI-driven demand for Nvidia’s products.
3. Hyperscaler Depreciation Headwinds
Rapid expansion by major cloud providers will drive rising depreciation expenses that could partially offset Nvidia’s revenue gains from AI hardware. These capital cost pressures are expected to intensify in 2027, challenging Nvidia to balance investment cycles with profit margins.
