TSMC exceeded expectations with Q4 sales and earnings, benefiting Nvidia. Nvidia stock surged by 3.2% following TSMC’s positive report, highlighting the close relationship between the companies. TSMC’s strong performance indicates continued high demand for AI chips, boding well for Nvidia’s growth prospects.

Investors are now considering whether to buy Nvidia stock after TSMC’s impressive earnings beat. With a market cap of approximately $4.59 trillion, Nvidia is valued at around 21.5 times expected sales and 40 times expected earnings. Despite potential challenges in AI infrastructure spending, TSMC’s strong report has given a boost to Nvidia stock.

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Read more at Nasdaq: Nvidia Is Surging Today — Is the Stock a Buy in 2026?