Infrastructure
TSMC Just Announced Incredible News for Nvidia and Broadcom Investors
Image: Primary Taiwan Semiconductor Manufacturing Co. said on its most recent conference call that the artificial intelligence build-out has not slowed and announced an additional $100 billion investment to expand its Arizona production facilities.
TSMC Chief Executive C.C. Wei said he sees demand through 2029 to 2030 and that this could be creating a new industry. The company handles the majority of chip production for Nvidia and Broadcom.
Nvidia and Broadcom shares trade at 22.6 and 31.9 times forward earnings, respectively, compared with 21.5 times for the S&P 500. The valuations suggest the market is not pricing in AI success beyond 2026, while TSMC's outlook indicates continued growth.
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