nvidia and tsmc stocks react to market turbulence: a glimpse into ai chip demand

2025-06-09 general

New York, Monday, 9 June 2025.
on june 9, 2025, nvidia (nvda) and taiwan semiconductor manufacturing (tsm) experienced intraday stock fluctuations. nvda’s day ranged from $141.51 to $143.27, while tsm’s ranged from $203.23 to $206.29. investors are warily eyeing these shifts. tariff concerns may affect demand for ai chips. tsm’s dominance in the global foundry market, holding 67% market share, positions it as a key player amidst these economic crosscurrents.

tsmc’s pivotal role in ai

tsmc stands as a critical player in the semiconductor industry, manufacturing chips for numerous fabless chip design firms and consumer electronics giants [4]. the company’s advanced processes are used by nvidia, amd, broadcom, marvell, and apple to produce ai-enabled chips [4]. these chips are essential for data centers, pcs, and smartphones [4]. tsmc anticipates that revenue from ai accelerators designed by nvidia, amd, broadcom, and marvell could see an annual compound growth rate in the mid-40% range over the next five years [4].

growth forecasts and market dominance

the global ai chip market is projected to grow at an annual compound rate of 35% through 2033 [4]. this growth is fueled by ai’s increasing integration across various sectors [4]. tsmc’s management indicated that its total addressable market (tam) reached $247.5 billion under the ‘foundry 2.0’ definition, encompassing not only traditional chip manufacturing but also packaging, testing, and assembly [4]. idc forecasts an 11% annual growth rate for the foundry 2.0 market in 2025, nearly double the previous year’s rate, expanding the market to $298 billion [4].

financial performance and future outlook

analysts estimated tsmc’s earnings per share (eps) at $1.33 [3]. tsmc’s past performance shows that beating eps estimates can positively influence its stock price [3]. for example, exceeding the eps by $0.03 in a prior quarter led to a 1.06% increase in share price the following day [3]. tsmc’s stock closed at $205.18 on june 7, 2025, reflecting a 0.905 0.90% increase [7]. the company’s eps (ttm) stands at $8.33, with a pe ratio (ttm) of 24.63 [7].

potential for significant market cap increase

the motley fool predicts that tsmc’s market capitalization could potentially exceed $3 trillion within five years, driven by the growing adoption of ai in smartphones, pcs, and data centers [5]. this projection assumes tsmc’s share in the foundry 2.0 market will rise from 28% to 37% by 2025 [4]. if tsmc captures 60% of the foundry 2.0 market, its annual revenue could reach $262 billion [4]. this figure is nearly three times its 2024 revenue [4].

Bronnen

stock volatility semiconductor market