By Adam Clark
Nvidia stock was hovering a few dollars shy of its record high in Wednesday morning trading. The latest figures from Taiwan Semiconductor Manufacturing could provide another boost to shares.
A string of recent gains has left Nvidia close to its record closing high -- adjusted for stock splits -- of around $135, hit in June. Nvidia shares, at around $133, were trading between gains and losses shortly after the opening bell. The stock closed up 4.1% on Tuesday.
Sales figures from Nvidia's key supplier TSM are a possible catalyst for the stock today. On Wednesday, the company reported a 40% rise in its September sales from the same month last year.
That brought the Taiwanese chip manufacturer's third-quarter sales to 759.69 billion New Taiwan dollars, or $23.58 billion overall. The company didn't offer detailed commentary alongside the monthly sales figure but has previously said it expected revenue of $22.4 billion to $23.2 billion for the third quarter overall.
TSMC -- and Nvidia -- have struggled to meet demand for AI chips. TSMC management has confirmed plans to double advanced chip-packaging capacity, called CoWoS, by the end of 2024. CoWoS is needed to make Nvidia's highest-performing AI chips.
And investors look to have largely moved past concerns over potential delays to shipments of its Blackwell artificial intelligence chips. They are now focused on companies' ability to keep investing heavily in AI technologies.
"With Nvidia alone expected to generate $175 billion in revenue next year (rising to $225 billion by 2027, based on consensus estimates), the full-blown AI spending could be as much as $1 trillion once the whole tech hardware supply chain, R&D, and other operating expenses are properly accounted [for]," wrote J.P. Morgan analysts in a research note on Tuesday.
Among other chip makers, Advanced Micro Devices was down 1.4% and Broadcom was off 0.7%.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
October 09, 2024 10:12 ET (14:12 GMT)
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