Despite TSMC's statement, Nvidia experiences a resurgence in demand for AI chips.

• On Thursday, Nvidia shares experienced a nearly 3% increase in value, following the semiconductor industry's poorest day of performance since 2020.
• Nvidia's rally was triggered by TSMC's announcement on Thursday that demand for high-end AI chips, which TSMC produces for Nvidia, remains high and supply remains constrained.
• Geopolitical concerns over Taiwan, as expressed by U.S. presidential candidate Donald Trump, are causing other chip stocks to suffer.

Nvidia's growth occurred following TSMC's announcement on Thursday that demand for high-end AI chips, which TSMC produces for Nvidia, remains high and supply is still limited.

Wei informed analysts that although he tries to achieve supply and demand balance, he is unable to do so. He stated that today's high demand required him to work extremely hard to meet customer needs.

TSMC Chairman C.C. Wei stated on Thursday that the supply will remain tight until 2025. Despite reporting higher revenue and net income than expected, the stock only fell slightly.

Despite growing apprehension about geopolitical tensions due to the upcoming US presidential election, TSMC announced that it will proceed with its international expansion to minimize risks. TSMC is currently constructing a substantial chip factory in Arizona, which is partially financed by US subsidies.

The Biden administration is considering imposing additional trade restrictions on exporting chip manufacturing equipment to China, according to a report by Bloomberg on Wednesday. ASML, a Dutch company that produces the machines used by TSMC to manufacture chips, experienced a 1% decline in stock value after announcing light sales guidance for the current quarter on Thursday.