Shares of key Nvidia (NASDAQ:NVDA) partners, including Taiwan Semiconductor Manufacturing Co (NYSE:TSM) and Foxconn (USOTC:FXCOF), climbed on Tuesday following the announcement that the U.S. chipmaker plans to invest up to $100 billion in OpenAI to expand AI data center infrastructure.
The agreement involves supplying data center chips and deploying at least 10 gigawatts of computing capacity as part of the collaboration.
Market analysts expect the move to boost demand for TSMC’s semiconductor production capabilities and Foxconn’s server assembly and manufacturing operations.
In early Asian trading, TSMC shares surged 3.5%, reaching a new record of NTD 1,340, while Foxconn, officially Hon Hai Precision Industry, rose 2.5% to NTD 222, marking their highest level in over a year.
The magnitude of Nvidia’s commitment is seen as a major catalyst for its network of hardware suppliers, providing a clear growth path for both foundries and contract manufacturers.
Taiwan Semiconductor stock price
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