Shares of Nvidia (NASDAQ:NVDA) surged 2.8% following strong quarterly results from Taiwan Semiconductor Manufacturing Co., reflecting optimism for sustained demand in AI hardware. TSMC reported record revenue, exceeding expectations, due to high demand for advanced chips used in AI applications. This positive report sparked a sector-wide increase in semiconductor companies’ shares, including Nvidia. The market reacted positively to TSMC’s success and plans for increased capital spending, suggesting a resilient AI-driven upcycle for semiconductors. Nvidia closed at $187.11, up 2.1% from the previous close.

Nvidia’s stock has shown volatility with 18 significant moves in the past year. The recent increase indicates the market views the news as meaningful but not fundamentally changing the company’s perception. Tigress Financial raised its price target on Nvidia to $350, reiterating a “Strong Buy” rating citing the company’s lead in AI infrastructure. Bernstein analyst also maintained an Outperform rating, highlighting the stock’s undervaluation. Despite being flat for the year, Nvidia’s shares are trading below their 52-week high at $187.44. Investors who purchased $1,000 worth of Nvidia shares five years ago would now have an investment worth $14,576.

Read more at StockStory: Why Nvidia (NVDA) Stock Is Trading Up Today