Nvidia’s CEO Weighs In on the Future with TSMC and Trump’s Remarks

Nvidia Corporation NVDA CEO Jensen Huang recently discussed the company’s strong connection with Taiwan Semiconductor Manufacturing Co. TSM and shared his perspective on President-elect Donald Trump‘s criticisms.

The Discussion that Matters

At the start of the month, during WIRED’s “The Big Interview” series, Huang addressed Trump’s claims regarding Taiwan taking business from the U.S. chip industry and how this affects Nvidia’s collaboration with TSMC.

Huang emphasized TSMC’s critical importance to the global tech supply chain, labeling the company an “extraordinary” innovator with impressive leadership. He noted, “If anything, TSMC as a company gets better and better every single year that we work with them so our relationship with TSMC is going to continue.”

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Nvidia’s Position Toward the New Administration

The Nvidia CEO reached out to Trump to extend his congratulations and indicated Nvidia’s willingness to assist the incoming administration. Huang expressed confidence that the new leaders will appreciate AI’s significance, offering support to help the government excel in this tech area.

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Why This Matters

Trump has consistently expressed concerns regarding Taiwan’s semiconductor industry, particularly during his October appearance on the Joe Rogan podcast. He accused Taiwan of jeopardizing the U.S. chip sector and criticized the U.S. CHIPS Act. Trump also threatened tariffs on Taiwanese chips, which could severely affect TSMC, a vital supplier for firms like Nvidia and Apple Inc.

Despite these tensions, TSMC confirmed its U.S. expansion plans remain unaffected, moving forward with a $65 billion investment in new semiconductor production facilities in Arizona.

Furthermore, TSMC is planning a significant global expansion, targeting a record $38 billion for 2025. The goal is to enhance production capacity by building additional chip fabrication plants worldwide.

Nvidia and TSMC have collaborated since 1995, with TSMC as the main manufacturer of Nvidia’s top-tier GPUs. Recently, TSMC reported third-quarter revenue of NT$759.69 billion ($23.50 billion), reflecting an impressive 39% year-over-year increase.

Stock Movement and Analyst Insights

This year, TSMC’s stock has jumped by 103.22%, while Nvidia’s shares have surged by 191.09%. According to data from Benzinga Pro, analysts from Barclays and Needham have set an average price target of $226.67 for TSMC, indicating a potential upward movement of approximately 9.87%.

Meanwhile, reports from DA Davidson, Phillip Securities, and Truist Securities suggest an average target of $154.67 for Nvidia, indicating a possible increase of about 10.65%.

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Next Steps in Focus

Disclaimer: This article was partially produced with assistance from Benzinga Neuro and subsequently reviewed and published by Benzinga editors.

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