Nvidia Chipmaker Taiwan Semi Posts Strong Sales, Delta Flies High Amid Q2 Results

Nvidia chipmaker Taiwan Semi reported strong sales, and Delta stock surged after Q2 results. Nvidia briefly topped a $4 trillion market cap. AI plays Astera Labs and Rubrik flashed buy signals.

Taiwan Semiconductor Manufacturing Company (TSM) and Nvidia Corporation (NVDA) reported robust Q2 results, driving their stocks higher. TSM, the world's leading chipmaker, saw its trailing 12-month revenue more than double to $95 billion, primarily driven by Nvidia's explosive growth. Nvidia's sales grew by ten times in the same period to $148.5 billion, contributing significantly to TSM's revenue [1].

Nvidia briefly topped a $4 trillion market cap on Wednesday, making it the first publicly traded company to reach this milestone. The chipmaker's stock price has been on a roller coaster this year, with a 21% year-to-date gain and a 24% increase over the past 12 months. The company's chips, modified graphics cards, and CUDA software platform are designed to both train and run AI programs, giving it a strategic advantage over rivals AMD and Intel [2].

In addition to the strong performance of TSM and Nvidia, AI-focused stocks like Astera Labs and Rubrik flashed buy signals. Analysts and investors are bullish on the AI revolution, with projections suggesting that total datacenter capex by big "hyperscalers" plus other companies will grow from nearly $600 billion this year to over $1 trillion in 2028. This demand is not slowing down, as all these companies realize that the transition to an "AI economy" is built on the infrastructure of Nvidia GPU systems [1].

TSMC, which holds about 67% of the global foundry market and nearly 90% of advanced chip production, is the preferred manufacturer for high-performance, custom AI accelerators and GPUs. The company plans to begin production of its 2nm node by late 2025 and mass production of the 1.4nm process by 2028, promising significant gains in power efficiency and performance [1].

Analysts have been raising their EPS estimates for TSM, with the Zacks consensus for 2025 rising from $9.00 to $9.28, representing a 32% annual growth. Sales are projected to top $117 billion for a 30% advance, underscoring the company's strong position in the AI market [1].

References:
[1] The Globe and Mail. "Bull of the Day: Taiwan Semi (TSM)." https://www.theglobeandmail.com/investing/markets/stocks/TSLA/pressreleases/33292728/bull-of-the-day-taiwan-semi-tsm/
[2] Yahoo Finance. "Nvidia Stock Eyes More Gains After Chipmaker Becomes First Company to Reach $4 Trillion Market Value." https://sg.finance.yahoo.com/news/nvidia-stock-eyes-more-gains-after-chipmaker-becomes-first-company-to-reach-4-trillion-market-value-141526893.html