TSMC Shares Rise 2% on Nvidia AI Outlook; Analyst Targets $468 Price
TSM•Taiwan Semiconductor shares jumped about 2% after Nvidia’s AI outlook highlighted increased chip demand for physical AI applications. An $468 price target signals 18% upside from depreciation arbitrage and delayed High-NA EUV, but gross margins could cap at 66–67% due to overseas expansion and U.S. data centre delays.
1. Market Reaction to Nvidia AI Outlook
Taiwan Semiconductor shares rose roughly 2% after Nvidia’s reinforced AI demand projections underscored Asia’s central role in supplying chips for emerging physical AI and robotics applications. Investors viewed stronger demand forecasts as a catalyst for increased wafer orders at TSMC, which now accounts for about 90% of Nvidia’s production costs.
2. Analyst Rating and Future Outlook
A tactical buy rating with a $468 price target implies an 18% upside, driven by depreciation arbitrage, delayed High-NA EUV adoption and growth in Silicon Photonics. The analysis cautioned that gross margins may plateau at 66–67% due to higher costs from overseas capacity expansion and delays in U.S. data centre buildouts.
