The TSMC prognosis drives up shares of AI chips, and Nvidia sets an all-time high

Nvidia shares hit an all-time high amid a rally in U.S. chip stocks after industry leader TSMC’s strong sales forecast boosted investor optimism about demand for processors used to power artificial intelligence (AI) applications.

Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, raised its expectation for annual revenue growth and said AI chip sales would account for a 15% share of its annual revenue.

With a gain of more than 11% in its U.S.-listed shares, TSMC’s market value surpassed $1 trillion.

Investor optimism in the prognosis for chipmakers, whose market valuations have surged over the last two years due to a boom in chip expenditure by tech giants, was strengthened by the projection from the leading producer of sophisticated AI processors.

Nvidia, a leading AI chip manufacturer and TSMC customer, increased by over 4% to reach a record high of $140.89 before retreating to close the day up 2%. AMD, a smaller competitor, increased by over 1%, while Micron, Qualcomm, and Broadcom increased from 1.6% to 3.6%.Nvidia, a leading AI chip manufacturer and TSMC customer, increased by over 4% to reach a record high of $140.89 before retreating to close the day up 2%. AMD, a smaller competitor, increased by over 1%, while Micron, Qualcomm, and Broadcom increased from 1.6% to 3.6%.