Nvidia closed at $187.05, up 2.13%, driven by strong AI demand and data center growth prospects. Trading volume hit 202.4 million shares, exceeding the three-month average. Investors have been cautious with AI-dependent companies but news of TSMC’s increased capital expenditures eased concerns, signaling long-term AI chip demand growth.

The S&P 500 and Nasdaq Composite both saw gains, with leading semiconductors like AMD and Intel showing mixed reactions. Investors have been wary of AI-dependent companies, but TSMC’s positive report and increased capital expenditures suggest long-term AI chip demand growth.

TSMC’s net profit surged 35% in Q4, with plans to increase capital expenditures by over 30% to about $56 billion this year. This signals strong AI chip demand and a long growth runway for the company.

Investors can join Stock Advisor for access to the 10 best stocks to buy right now. Stock Advisor has a total average return of 952%, outperforming the S&P 500. Howard Smith has positions in Intel and Nvidia, with options on both. The Motley Fool has positions in AMD, Intel, Nvidia, and TSMC.

Read more at Nasdaq: Stock Market Today, Jan. 15: Nvidia Rises on Strong AI Demand and Data Center Growth Optimism