Nvidia's Blockbuster Quarter Could Boost TSMC Stock

TSMC's stock may see a significant boost after August 26 due to Nvidia's strong quarterly results. As Nvidia is TSMC's largest customer, accounting for more than 20% of its revenue this year, the chip giant's healthy order book and potential price hikes could lead to stronger revenue and earnings growth for TSMC.

Nvidia is expected to deliver a blockbuster quarter, with record revenue of $91 billion in fiscal Q2, a 95% increase from last year. The company's top line has been accelerating, growing by 85% in the previous quarter. Analysts expect Nvidia's growth rate to continue, with consensus estimates projecting an 82% year-over-year increase in revenue for fiscal Q3.

The potential price hikes TSMC is reportedly set to implement could lead to a robust increase in its bottom line. If TSMC's earnings per share reach $47.75 by 2030, as predicted, the company's stock could jump to $1,150, a 182% increase from its current price.

TSMC has underperformed the broader semiconductor sector this year, but Nvidia's strong results could trigger a bull run for the company's stock. Analysts expect TSMC's growth rate to accelerate, with earnings per share increasing by 59% in 2026.