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TSMC: Why an Nvidia Chip Could Supercharge the Next Rally

Investing.com Logo Investing.com By Leo Miller
TSMC: Why an Nvidia Chip Could Supercharge the Next Rally

TSMC could benefit significantly from increased demand for NVIDIA's H200 chips in China following President Trump's policy shift allowing sales to approved Chinese customers. Chinese firms have ordered over 2 million H200 chips for 2026, but NVIDIA only has 700,000 available, prompting the company to contact TSMC for production ramp-up. This could create a substantial new revenue stream for TSMC, though approvals from both U.S. and Chinese governments are still pending.

Insights
KEY   neutral

Identified as potential AI productivity beneficiary in banking sector with back-office automation potential


TSM   positive

TSMC stands to gain a substantial new revenue stream from increased H200 chip production for Chinese customers. The company has the production capacity and technological advantage to meet demand that Chinese competitors cannot fulfill, potentially supporting continued share price appreciation.