Taiwan Semiconductor Hits Record High Amid AI Boom and OpenAI-AMD Partnership

Taiwan Semiconductor Surges Past 52-Week High As AI Boom Fuels Record Market Rally - Taiwan Semiconductor (NYSE:TSM)

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: Taiwan Keeps Chip Edge While Eyeing US Deal Photo: Shutterstock TSMTaiwan Semiconductor Manufacturing Co Ltd$303.153.75%OverviewAMDAdvanced Micro Devices Inc$208.5926.7%NVDANVIDIA Corp$185.28-1.25%Market News and Data brought to you by Benzinga APIs

TSMC Shares Notch New Record After OpenAI, AMD Deal

Taiwan Semiconductor Manufacturing's shares touched a new high as a multibillion-dollar partnership between OpenAI and Advanced Micro Devices on AI data centers has fueled expectations of stronger demand along the entire semiconductor supply chain. Shares of the world's largest contract chip maker rose 2.9% to a new intraday record of 1,440 New Taiwan dollars, equivalent to US$47.22, on Tuesday. OpenAI has committed to deploying 6 gigawatts of computing capacity using AMD's graphics processing units over the next few years, the companies said Monday. The deal comes after Nvidia's $100 billion investment into the ChatGPT maker, which will allow OpenAI to build and deploy at least 10 gigawatts of Nvidia systems for its AI data centers. OpenAI has also signed a $300 billion deal with Oracle to purchase another 4.5 gigawatts of cloud-computing power. "This is yet another validation sign that the AI arms race is heating up among Big Tech firms with AMD now joining the AI party," Wedbush analysts said in a note, adding that this AI spending cycle is still in an early stage. Citi analysts said the AMD announcement helps boost the entire semiconductor sector with increased demand and multiples. TSMC's dominance in advanced chip manufacturing and packaging makes it one of the biggest beneficiaries of increased AI spending by tech companies. The Taiwanese chip maker's 2025 revenue could beat already-lifted full-year guidance of 30% growth in U.S. dollar terms amid rising AI demand, Citi analysts said in a separate note recently. The company's share moves Tuesday are tracking gains by its U.S.-listed stock overnight, which closed 3.5% higher following the AMD news. TSMC's shares have gained 22% over the past month as investors cheered the partnerships among the U.S. tech giants. News Corp, owner of The Wall Street Journal and Dow Jones Newswires, has a content-licensing partnership with OpenAI.