Nvidia Rises 7.87% as TSMC Lifts 2026 Capex to $52–56B
Nvidia shares climbed 7.87% after Taiwan Semiconductor reported Q4 wafer revenue from 3nm chip shipments rose to 28% and raised its 2026 capex guidance to $52–56 billion, underpinning Nvidia’s AI production capacity. TSMC’s $165 billion plan to expand US and Japan fabs addresses geopolitical risks crucial for Nvidia’s supply chain.
1. Nvidia Stock Reaction
Nvidia shares surged 7.87% on the back of strong supply outlook from its key foundry partner. The jump reflects investor confidence that expanded 3nm capacity at TSMC will help meet surging demand for Nvidia’s AI accelerators.
2. TSMC Q4 3nm Shipments
TSMC reported that its 3-nanometer process accounted for 28% of total wafer revenue in Q4, up from 23% in Q3. That increase highlights rapid adoption of the most advanced node, which fuels Nvidia’s latest GPU families.
3. 2026 Capex Guidance Boost
The company boosted its 2026 capital expenditure outlook to a range of $52 billion–$56 billion, compared with $40.9 billion last year. The higher spend will accelerate capacity additions at leading-edge nodes critical for Nvidia’s chip orders.
4. Geopolitical Supply Expansion
TSMC is investing $165 billion to build new fabs in Arizona and Japan to diversify production outside Taiwan. This expansion mitigates geopolitical risks and secures long-term supply for Nvidia’s AI chip roadmap.