Nvidia's CEO praises TSMC as best fab in the world, positioning it for strong growth

From NASDAQ.: 2024-09-21 06:30:00

Nvidia has seen tremendous growth in market cap, sales, and profits due to the demand for its GPUs. With incredible pricing power and high operating leverage, the company has performed exceptionally well over the past two years.

CEO Jensen Huang praised Taiwan Semiconductor Manufacturing (TSMC) as the best fab in the world, stating that TSMC’s capabilities far surpass its competitors. TSMC’s ability to scale operations and win big contracts with tech companies positions it for continued growth.

TSMC is set to benefit from the increasing demand for AI systems in data centers, with spending expected to reach $193.3 billion by 2027. Analysts forecast over 20% annual earnings growth for TSMC over the next five years, making it an attractive investment opportunity.

Investors are urged to consider TSMC as a potential investment, as the company’s position as the industry leader and strong growth potential make it a compelling choice. TSMC’s collaboration with tech giants for cutting-edge chips and improvement in margins further enhance its prospects for future success.



Read more at NASDAQ.: Nvidia’s CEO Just Explained Why This Is the Artificial Intelligence (AI) Chip Stock to Own