Nvidia’s Huang says TSMC among all-time greats: Buying its stock is ‘very smart’

During a recent visit to Taiwan, Jensen Huang, the CEO of Nvidia, expressed his admiration for Taiwan Semiconductor Manufacturing Co. (TSMC), stating that investing in the company would be a wise decision. This endorsement comes as the U.S. government is exploring equity stakes in technology firms that have benefited from funding under the CHIPS Act. Huang emphasized that his trip primarily aimed to thank TSMC for its contributions to Nvidia’s upcoming AI chip platform called Rubin. When asked about Washington's interest in acquiring a stake in TSMC, he responded with high praise, labeling TSMC as one of the most remarkable companies in history. "Anyone looking to buy TSMC stock is making a very intelligent choice," Huang stated. He revealed that TSMC is currently developing six new products for Nvidia, which include a central processing unit (CPU) and a general processing unit (GPU), both essential for advanced computing and AI applications. Earlier this week, reports indicated that U.S. Commerce Secretary Howard Lutnick was considering equity stakes in companies like Micron, TSMC, and Samsung, in exchange for support from the CHIPS Act. The CHIPS Act, enacted with bipartisan backing during the Biden administration, aims to bolster U.S. semiconductor manufacturing by providing financial assistance to chipmakers expanding their operations domestically. TSMC is set to receive $6.6 billion from this initiative to support the establishment of three advanced chip fabrication facilities in Arizona. Lutnick also confirmed discussions regarding a potential 10% equity stake in the struggling semiconductor giant Intel, hinting that similar opportunities could arise with other companies. However, a report from the Wall Street Journal suggested that the government is not planning to pursue shares in semiconductor firms that are increasing their investments in the U.S., according to a government official. In addition to his comments on TSMC, Huang noted Nvidia's plans to establish a new office in Taiwan, dubbed "NVIDIA Constellation," to accommodate its expanding workforce in the region. He mentioned ongoing discussions with local authorities to address construction-related matters. "With a growing number of employees in Taiwan, we are collaborating closely with chip manufacturers and system makers across the island, necessitating a strong engineering presence to support our operations," he added. TSMC, the leading contract chip manufacturer globally, has seen its shares rise by 6.5% this year.