TSMC and Foxconn Shares Surge on Nvidia’s $100 Billion OpenAI Deal

Shares of Nvidia (NASDAQ: NVDA) suppliers Taiwan Semiconductor Manufacturing Co. (TSMC) and Foxconn climbed on Tuesday after Nvidia announced plans to invest up to $100 billion in OpenAI to expand artificial intelligence datacenter infrastructure.

Nvidia’s $100B Commitment Boosts Suppliers

The deal includes supplying advanced data center chips and deploying at least 10 gigawatts of computing power. Analysts say the partnership will significantly lift demand for TSMC’s chip fabrication capacity and Foxconn’s server assembly and hardware manufacturing services.

TSMC and Foxconn Hit New Highs

In Asian markets, TSMC shares jumped 3.5%, reaching a record high of NTD 1,340. Foxconn, also known as Hon Hai Precision Industry, gained 2.5% to NTD 222, marking its highest level in more than a year.

Strong Demand for Nvidia’s Ecosystem

The scale of Nvidia’s investment effectively secures long-term demand for its supply chain partners, including semiconductor foundries and contract manufacturers. This positions TSMC, Foxconn, and other suppliers at the center of the booming AI hardware ecosystem.