Nvidia CEO Jensen Huang Praises TSMC, Says Buying Its Stock is "Very Smart" Amid US Interest in Acquiring Stakes.

Nvidia CEO Jensen Huang praised Taiwan Semiconductor Manufacturing Co. (TSMC) as one of the greatest companies in history, saying buying its stock is "very smart." Huang's comments come amid U.S. interest in acquiring stakes in tech companies, especially those receiving funding under the U.S. CHIPS Act. TSMC is making six new products for Nvidia, including a new central processing unit and general processing unit. The U.S. Commerce Secretary has confirmed talks with Intel for a 10% equity stake, but the government has no plans to seek shares in firms increasing U.S. investments.

Nvidia CEO Jensen Huang recently visited Taiwan, where he lauded Taiwan Semiconductor Manufacturing Co. (TSMC) as one of the greatest companies in history. Huang, during his trip, stated that buying TSMC stock is "very smart." This comes at a time when the U.S. administration is signaling interest in acquiring stakes in tech companies, particularly those receiving funding under the U.S. CHIPS Act [1].

TSMC is currently working on six new products for Nvidia, including a new central processing unit (CPU) and general processing unit (GPU), which are crucial for advanced computation, especially in AI [1]. The U.S. Commerce Secretary, Howard Lutnick, has confirmed talks with Intel for a 10% equity stake in exchange for CHIPS Act funding. However, the government has no plans to seek shares in firms increasing their U.S. investments, according to a government official [2].

TSMC's stock has been performing well, with shares gaining 6.5% year-to-date. The company's revenue growth and advanced node dominance continue to strengthen its position in the semiconductor market. TSMC's expansion strategy, including a $65 billion investment in Arizona, positions it as a leader in 3nm and 2nm production. The company's high-yield manufacturing and market position allow it to pass on higher production costs to customers, such as Nvidia, Apple, and Microsoft [2].

Despite the potential equity talks, TSMC remains resilient and well-positioned in the market. The company's strong demand from AI, smartphone, and cloud customers, coupled with its strategic exemptions from U.S. import tariffs, further supports its fundamentals. Analysts project TSMC's revenue to climb by 38% in 2025, with a five-year forward growth rate of over 22% [2].

References:
[1] https://www.cnbc.com/2025/08/22/nvidia-jensen-huang-tsmc-chips-.html
[2] https://www.tradingnews.com/news/tsmc-stock-price-forecast-nyse-tsm-at-239-usd-targets-300-usd