TSMC Shares Notch New Record After OpenAI, AMD Deal
By Sherry Qin
Taiwan Semiconductor Manufacturing's shares touched a new high as a multibillion-dollar partnership between OpenAI and Advanced Micro Devices on AI data centers has fueled expectations of stronger demand along the entire semiconductor supply chain.
Shares of the world's largest contract chip maker rose 2.9% to a new intraday record of 1,440 New Taiwan dollars, equivalent to US$47.22, on Tuesday.
OpenAI has committed to deploying 6 gigawatts of computing capacity using AMD's graphics processing units over the next few years, the companies said Monday.
The deal comes after Nvidia's $100 billion investment into the ChatGPT maker, which will allow OpenAI to build and deploy at least 10 gigawatts of Nvidia systems for its AI data centers. OpenAI has also signed a $300 billion deal with Oracle to purchase another 4.5 gigawatts of cloud-computing power.
"This is yet another validation sign that the AI arms race is heating up among Big Tech firms with AMD now joining the AI party," Wedbush analysts said in a note, adding that this AI spending cycle is still in an early stage.
Citi analysts said the AMD announcement helps boost the entire semiconductor sector with increased demand and multiples.
TSMC's dominance in advanced chip manufacturing and packaging makes it one of the biggest beneficiaries of increased AI spending by tech companies.
The Taiwanese chip maker's 2025 revenue could beat already-lifted full-year guidance of 30% growth in U.S. dollar terms amid rising AI demand, Citi analysts said in a separate note recently.
The company's share moves Tuesday are tracking gains by its U.S.-listed stock overnight, which closed 3.5% higher following the AMD news.
TSMC's shares have gained 22% over the past month as investors cheered the partnerships among the U.S. tech giants.
News Corp, owner of The Wall Street Journal and Dow Jones Newswires, has a content-licensing partnership with OpenAI.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
October 07, 2025 01:30 ET (05:30 GMT)
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