At a press conference today, Nvidia (NVDA) CEO Jensen Huang once again took the opportunity to heap praise on foundry giant Taiwan Semiconductor (TSM).
“They are a world-class foundry and support customers of diverse needs. You can’t overstate the magic that is TSMC,” said Huang. The executive was speaking to reporters after Nvidia made a landmark $5 billion investment into fellow semiconductor company Intel (INTC), with Taiwan Semiconductor set to provide foundry support as the two team up on custom CPUs for data centers.
“We both still have a lot of respect for TSMC, and we will continue to work with them,” confirmed Intel CEO Lip-Bu Tan.
This isn’t the first time Taiwan Semiconductor has scored a boost from Nvidia’s CEO; during a visit to Taiwan last month, Huang remarked that “anybody who wants to buy TSMC stock is a very smart person.”
TSM stock ramped to a new high of $270.54 earlier, extending its 2025 gains to 35.5%. The 14-day Relative Strength Index (RSI) of 74 is firmly in overbought territory.
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Fundamentally speaking, TSM has demonstrated remarkable growth, with its foundry market share expanding to 38% in Q2 2025, up from 31% year-over-year, driven primarily by surging artificial intelligence (AI) demand and China’s subsidy programs. The company’s technological leadership is evident in its successful development of 2-nanometer process technology, with MediaTek already completing tape-out for an upcoming flagship chip using this advanced process.
TSM’s strategic importance in the AI revolution is underscored by projections of AI chip demand growing at over 40% CAGR through 2028. The company’s aggressive reinvestment strategy, including the launch of an AI chip R&D center in Germany, positions it well to maintain its technological leadership in the semiconductor foundry market. Major customers are lined up to utilize TSM’s advanced node technology – not just Nvidia and Intel, but also Apple (AAPL) and Advanced Micro Devices (AMD) – which further cements its market position.
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