Nvidia Huang Calls TSMC One of All Time Greats Buying Stock Smart

Industry Insights from Next Move Strategy Consulting

On Friday, Nvidia CEO Jensen Huang lauded Taiwan Semiconductor Manufacturing Co. during a visit to Taiwan, remarking that anyone considering an investment in the company would be “very smart.”

This statement comes amid signals from the U.S. administration indicating interest in acquiring stakes in technology companies, particularly those benefiting from funding under the U.S. CHIPS Act.

Nvidia CEO Jensen Huang Praises TSMC During Taiwan Visit

During his visit to Taiwan, Nvidia CEO Jensen Huang emphasized that the primary purpose of his trip was to express gratitude to Taiwan Semiconductor Manufacturing Co. (TSMC) for their work on Nvidia’s Rubin, the company’s next-generation AI chip platform. His remarks came in response to a question about Washington’s potential interest in acquiring a stake in TSMC.

“Well, first of all, I think TSMC is one of the greatest companies in the history of humanity, and anybody who wants to buy TSMC stock is a very smart person,” Huang stated.

He further highlighted that TSMC is currently producing six new products for Nvidia, including a new central processing unit (CPU), which handles general computation tasks, and a new general processing unit (GPU), designed for advanced computations, particularly in the field of artificial intelligence.

U.S. Government’s Interest in Semiconductor Equity Stakes Sparks Conflicting Reports

In an interview with CNBC on Tuesday, Lutnick confirmed that the U.S. government was in discussions to acquire a 10% equity stake in struggling semiconductor company Intel, and suggested that the administration might explore similar investments in other firms.

However, a report from the Wall Street Journal on Thursday indicated that the government had no plans to purchase shares in semiconductor companies that are actively increasing their U.S. investments, citing a government official. Notably, TSMC announced in March that it would expand its U.S. investment to $165 billion.

Nvidia Expands Taiwan Presence

Separately, Huang stated that Nvidia is eager to begin work on “NVIDIA Constellation,” a newly announced Taiwan office to accommodate its expanding workforce in the region.

He noted that the company is coordinating with the local government to resolve certain issues before construction can start.

“We have many, many employees here in Taiwan, and we are growing here because our supply chain is so busy,” Huang said.

He added, “We are working with chip companies, system vendors, and system makers all over Taiwan. Everyone is working very hard for us, and we need many engineers to collaborate with them.”

Shares of TSMC, the world’s largest contract chip manufacturer, have risen 6.5% so far this year.

Source: CNBC

Prepared by: Next Move Strategy Consulting