Most notably, Nvidia’s performance was driven by its data center business, which includes the A100 and H100 AI chips that are needed to build and run artificial intelligence applications like ChatGPT.
Shares of Taiwan Semiconductor Manufacturing Corp
In an Aug. 21 note, Morgan Stanley analysts estimated that TSMC will generate 6% of revenue from AI-related semiconductors in 2023.
The team also expects Nvidia to see a 50% compounded annual growth rate in the segment for the next five years, adding that it views the company’s outlook guidance “as a near-term share price catalyst [for TSMC].”
Other stocks in the broader semiconductor sector also rose with South Korean memory chip maker SK Hynix surging as high as 6.29% above its last close.