So here’s the deal: Taiwan Semiconductor (TSMC) just dropped some numbers that made Wall Street do a little happy dance, and Nvidia got to ride along for the party. Let me break down why these two chip-making giants are suddenly the cool kids at the stock market lunch table.
TSMC’s September Flex
TSMC – basically the world’s most important company you’ve probably never heard of – just announced they made NT$331 billion in September. That’s about $10.8 billion in real money, and while it was down slightly from August (hey, even chip makers have off months), it was up a whopping 31% from last September.
Think of TSMC as the world’s fanciest bakery, except instead of croissants, they’re baking the most advanced computer chips on the planet. And business is booming. For the first nine months of 2025, they’ve raked in about $90 billion – that’s 36% more than last year. Not too shabby for a company most people couldn’t pick out of a lineup.
The Nvidia Connection (Plot Twist!)
Here’s where it gets interesting. TSMC doesn’t just make chips for fun – they make them for other companies. And guess who’s one of their biggest customers? Our old friend Nvidia, the company that’s basically become synonymous with “AI is taking over the world.”
Nvidia accounts for roughly 20% of TSMC’s revenue, which means when TSMC does well, it’s often because Nvidia is ordering a ton of chips. It’s like when your favorite restaurant is packed – you know the chef is doing something right.
So when investors saw TSMC’s strong numbers Thursday morning, they basically went “Oh snap, Nvidia must be selling a lot of AI chips!” And boom – Nvidia stock jumped 4% faster than you can say “artificial intelligence.”
The Numbers Game
TSMC stock has been on an absolute tear this year, up 48% year-to-date and 60% over the past 12 months. That’s the kind of performance that makes your index fund look like it’s taking a nap.
Even after Thursday’s slight afternoon dip (profit-taking, probably – some folks decided to cash in their chips, pun intended), analysts at Barclays bumped up their price target to $330, suggesting there’s still about 11% upside left in the tank.
Why This Matters to You
Look, unless you’re planning to build your own smartphone in your garage, you might wonder why you should care about chip manufacturing. But here’s the thing: TSMC is basically the backbone of our digital world. Your phone, your car’s computer, that smart fridge that judges your midnight snack choices – they all depend on chips that probably came from TSMC.
And with AI continuing its world domination tour, the demand for advanced chips isn’t slowing down anytime soon. TSMC sits right in the middle of that gold rush, and Nvidia is their biggest pickaxe customer.
Sometimes the most boring-sounding companies end up being the most important investments. Who knew semiconductors could be this exciting?