What's Going On Nvidia Stock Tuesday?

Nvidia Corp NVDA stock is trading higher Tuesday. Its peer Taiwan Semiconductor Manufacturing Company Ltd TSM has earmarked nearly T$90 billion ($2.87 billion) for an advanced packaging facility in northern Taiwan.

The Apple Inc AAPL and Nvidia supplier is eying an advanced packaging fab in the Tongluo Science Park, Reuters cites a company statement.

The Tongluo Science Park administration has officially approved TSMC's application to lease land, with TSMC expecting the new plant in the northern county of Miaoli to create about 1500 jobs.

Also Read: Apple Looks To Maintain Steady iPhone Shipments

CEO C.C. Wei said last week that TSMC failed to fulfill customer demand driven by the AI boom and plans to roughly double its capacity for advanced packaging - which involves placing multiple chips into a single device, lowering the added cost of more powerful computing.

The company expected the ramp-up to ease the crisis towards the end of 2024.

Analysts have claimed Nvidia is the biggest beneficiary of the generative AI boom thanks to its Hopper and Grace GPUs.

Reports claimed that the launch of new Apple iPhones and strong demand for AI chips from Nvidia and peers, with robust wafer-start momentum, will likely trigger the rebound.

Interestingly, TSMC plans to keep its most advanced chip technology in Taiwan.

In Germany, the government plans to invest €20 billion ($22.15 billion) in the semiconductor industry. Intel Inc INTC and TSMC shared plans to develop chip-making plants in the country, Reuters reports.

Price Action: NVDA shares traded higher by 0.90% at $450.15 premarket on the last check Tuesday.

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