Taiwan Semiconductor Shares Surge 6.3% Amid Nvidia-Driven Rally, Boosting Chip Sector

Shares of Taiwan Semiconductor Manufacturing Company (TSMC) climbed 6.3% in early trading, marking one of the strongest gains among major semiconductor firms. The move followed reports of increased order volumes from Nvidia, particularly for its next-generation H20 and B200 accelerators built on TSMC’s 5nm and 3nm fabrication processes. The uptick reflects growing confidence in the sustained demand for high-performance computing chips used in artificial intelligence applications. The broader semiconductor sector responded positively, with the Philadelphia Semiconductor Index gaining 2.8% in pre-market sessions. Key components such as ASML Holding and Advanced Micro Devices saw gains of 4.1% and 3.7%, respectively, as investors priced in stronger-than-expected AI-driven revenue streams across the supply chain. TSMC’s stock performance underscored its pivotal role as the world’s largest dedicated semiconductor foundry, processing over 60% of global advanced chip production. Market participants are now turning attention to the upcoming earnings announcements from financial giants Goldman Sachs and Morgan Stanley, both scheduled for release within the next 24 hours. Analysts anticipate strong results driven by resilient investment banking activity and client-driven trading volumes, though concerns around elevated interest rates and potential credit risks remain. The outcome could influence investor sentiment in both the financial and tech sectors. The interplay between AI-driven chip demand and macroeconomic indicators is shaping market dynamics, with TSMC’s performance serving as a bellwether for global tech capital expenditure. Sector-wide momentum suggests sustained investor appetite for semiconductor exposure, particularly among firms with deep ties to AI infrastructure development.