TSMC Just Announced Incredible News for Nvidia and Broadcom Investors
TSMC just confirmed that the AI build-out is still alive and well.
Overview
Taiwan Semiconductor Manufacturing (NYSE: TSM) is a very important company to follow. It's a key chip fabricator for nearly every company involved in the artificial intelligence (AI) build-out. If TSMC raises the red flag regarding AI build-out health, then investors have every right to panic and dump shares of every AI-related stock they own. But TSMC didn't do that. Instead, it made an announcement that waved the green flag and gave every indication that the AI build-out could last for several more years.
This is huge news for many companies, but I think Broadcom (NASDAQ: AVGO) and Nvidia (NASDAQ: NVDA) are two of the biggest beneficiaries of this announcement. These two have had a rough go lately, with both stocks falling amid fears that AI hyperscalers are overspending on computing capacity and may cut spending to meet demand. However, TSMC's news suggests investors should be more inclined to believe industry experts than the market's feelings.
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Originally published at www.fool.com.