Taiwan Semiconductor (TSM) reports strong September quarter results, with a 31.4% increase in sales compared to last year. Susquehanna raised the price target to $400 from $300, reflecting the company’s positive performance. TSMC is a key player in chip fabrication for top tech companies like Apple and NVIDIA, driving the AI economy.

With TSMC’s revenue more than doubling in less than five years, NVIDIA’s explosive growth contributes significantly to this success. NVIDIA’s DGX systems have played a crucial role in the AI economy, with demand skyrocketing since the unveiling of the DGX Grace Hopper 200 system in 2023.

TSMC is a vital partner for companies like Apple in driving innovation and providing advanced chip technology. Their 5nm and 3nm transistor nodes are essential for high-end mobile devices and 5G infrastructure, supporting the global rollout of next-gen connectivity. Smaller nodes lead to improved performance, power efficiency, and transistor density in chips.

NVIDIA’s advancements in GPU technology, with plans for more advanced systems like the Rubin and Feynman series, indicate a continued demand for AI infrastructure. Major tech companies are projected to invest over $1 trillion in datacenter capex by 2028, highlighting the growth potential in the AI economy and NVIDIA’s role in it.

TSMC’s role in the AI economy is crucial, with the company holding a significant market share in chip production. Their advanced silicon fabrication is essential for high-performance AI accelerators and GPUs, powering innovations in AI and machine learning. TSMC’s plans for even more advanced nodes show their commitment to staying at the forefront of technology.

Read more at Nasdaq: Taiwan Semi (TSM) is Going to $400