Taiwan Semiconductor Manufacturing Co (NYSE:TSM) topped its 52-week high of $196.72 on Monday as the continued artificial intelligence frenzy spurred investor optimism.
Key client Advanced Micro Devices (NASDAQ:AMD) announced a landmark agreement with OpenAI to supply up to 6 gigawatts of AMD Instinct GPUs to power the AI leader's next-generation infrastructure.
The rollout is scheduled to begin in the second half of 2026 with a 1-gigawatt deployment of MI450 GPUs, followed by multi-phase expansions across future AMD data center chip generations.
Also Read: Why This Investor Is Trimming His Largest Holding Taiwan Semiconductor
CFO Jean Hu said the agreement could generate "tens of billions of dollars in revenue" and be "highly accretive" to earnings.
AMD shares climbed 33.6% to $219.99, surpassing their 52-week high of $186.65. The deal follows Nvidia's (NASDAQ:NVDA) $100 billion partnership with OpenAI to deploy at least 10 gigawatts of Vera Rubin systems starting in 2026. Nvidia is also a key client of Taiwan Semiconductor.
The Taiwanese contract chipmaker also led a record rally in Taiwan's stock market on Monday, as surging enthusiasm for AI development pushed the TAIEX to fresh highs.
Analysts said investors viewed Taiwan Semiconductor as attractively valued compared with U.S. chipmaker Nvidia (NASDAQ:NVDA), whose stock has soared on booming AI demand.
Hua Nan Securities analyst Kevin Su told the Taipei Times that Taiwan Semiconductor's rally reflected investors' belief that it remains central to the global AI supply chain as the world's largest contract chipmaker producing Nvidia's advanced processors.
The buying spree extended to other prominent semiconductor names.
Su noted that investors are watching for new signals from Washington as the U.S. prepares to release September's nonfarm payroll data, which could influence the Federal Reserve's next moves on interest rate cuts.
Price Action: TSM stock was trading 4.69% higher at $305.90 as of last check on Monday.
Read Next:
Photo: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
