Nvidia Jumps 2% After Securing 70% of TSMC's 2025 Capacity

Nvidia has secured over 70% of TSMC's advanced chip packaging capacity for 2025, according to a report from Taiwanese newspaper Economic Daily. The strong demand for Nvidia's next-generation Blackwell AI chips has driven the company to lock in a significant portion of TSMC's Chip on Wafer on Substrate (CoWoS) with silicon interposer capacity.

Following the news, Nvidia shares opened about 2% higher, while TSMC remained flat.

TSMC is currently the only large-scale provider of advanced chip packaging, a critical process that integrates multiple semiconductors into a single electronic device. The company is also the world's leading contract chip manufacturer.

This latest development follows earlier reports from late 2024, which indicated that Nvidia had already secured at least 60% of TSMC's advanced packaging capacity for 2025. As AI adoption accelerates, Nvidia continues to benefit from surging demand for AI-focused data center chips.

Recent earnings reports from Microsoft, Google, Meta, and Amazon—members of the "Magnificent 7"—have shown that capital spending on AI infrastructure remains a top priority. This suggests that demand for Nvidia's AI chips will remain strong throughout 2025. Nvidia is set to release its latest earnings report on Wednesday after the market closes, making it the last of the seven tech giants to report. Given the widespread increase in AI-related investments, analysts expect Nvidia to deliver strong results.

As demand for AI chips continues to soar, TSMC is also poised to benefit. The company recently reported stellar fourth-quarter earnings and announced plans to expand its manufacturing and packaging operations in 2025 to keep up with rising AI demand.

Additionally, TSMC is likely to gain from growing U.S. initiatives to enhance AI infrastructure, further strengthening its position as a critical supplier in the AI chip ecosystem.