Nvidia NVDA CEO Jensen Huang praised Taiwan Semiconductor Manufacturing Co. TSMC and suggested that investing in the company would be a wise move.
Huang Praises TSMC, Speaks About New Collaboration
Huang’s remarks came during a visit to Taiwan, where he expressed his gratitude to TSMC for its work on Nvidia’s Rubin, the company’s next-generation AI chip platform, reported CNBC. He also noted that TSMC is working on six new products for Nvidia, including a new CPU and a new GPU designed for advanced computing, with a particular focus on AI.
Check out the current price of TMSC stock here.
Huang, when questioned about the U.S. administration's possible interest in acquiring stakes in TSMC, responded by lauding the company as one of the greatest in history.
“Anybody who wants to buy TSMC stock is a very smart person,” stated Huang.
TSMC Arizona turns profitable as US chip race heats up
Jensen Huang’s praise comes at a time when TSMC’s Arizona unit recently turned a profit for the first time, demonstrating its resilience amid increasing competition from companies like Samsung SSNLF and Intel INTC.
Although the U.S. government has shown interest in acquiring stakes in tech companies, the Wall Street Journal reported that there are no plans to pursue shares in semiconductor firms that are boosting their U.S. investments. TSMC announced in March an expansion of its investment in the U.S. to $165 billion.
Earlier this month, President Donald Trump indicated that TSMC would invest $300 billion in Arizona in an attempt to bring chip manufacturing back to the U.S. However, Analyst Ming-Chi Kuo challenged Trump's claim, clarifying that TSMC has so far pledged $165 billion in U.S. investments, not the $200 billion figure Trump cited earlier.
H20 AI Chip Halt May Weigh On Nvidia's China Outlook
Meanwhile, Nvidia has reportedly ordered suppliers to halt work on its H20 artificial intelligence chip for China, as Beijing pushes local firms toward domestic alternatives. This could potentially impact Nvidia’s next quarter outlook, adding to the significance of its ongoing collaborations with TSMC.
Huang said Nvidia is eager to launch "NVIDIA Constellation," its newly announced Taiwan office that will accommodate the company's expanding workforce in the region. He added that the company is still coordinating with the local government to resolve certain issues before construction can begin.
Benzinga Edge Stock Rankings shows that TSMC had a stronger price trend over the medium and long term but a weaker trend over the short term. Check the detailed report here.
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