Nvidia's Jensen Huang wants wants a lot more production from Taiwan Semi. Here's what that means for the AI story.

By Barbara Kollmeyer

JPMorgan sees lots of demand for Taiwan Semi's products well into 2026

Che-Chia Wei (L), chief executive officer of Taiwan Semiconductor Manufacturing Co. (TSMC), and Jensen Huang (R), chief executive officer of Nvidia Corp., attending the TSMC sports day event in Hsinchu on Nov. 8.

Shares of Taiwan Semiconductor Manufacturing climbed on Monday in step with surging tech stocks, with the major chip-equipment supplier also getting a shot of confidence from client Nvidia.

"TSMC is doing a very good job supporting us on wafers," Nvidia (NVDA) CEO Jensen Huang remarked on Saturday during a trip to Taiwan, according to Reuters. He added that the company was seeing "very strong demand" for its next-generation Blackwell chips.

Huang said he had requested Taiwan Semi (TSM) (TW:2330) produce more wafers - a thin slice of semiconductor material used as the basis for microchips and integrated circuits - for the Blackwell chips, reports said. Other sources noted that he's also looking to shore up supply for Blackwell's successor, called Rubin.

The AI chipmaker's CEO took time to praise its role in Nvidia's success: "No TSMC, no Nvidia," he said, according to Bloomberg.

Shares of Nvidia and TSMC each rose over 3% in premarket trading on Monday, though Nasdaq-100 futures (NQ00) were climbing and leading the way higher for Wall Street as investors cheered signs that the U.S. government shutdown could soon be ending.

Huang announced last month that Nvidia and TSMC had made the first wafer for the Blackwell chips on U.S. soil at its Arizona factory. TSMC's CEO C.C. Wei reportedly told employees that he expects repeated record sales annually after meeting Huang.

Taiwan Semi on Monday reported a 16.9% gain in net revenue for October, the weakest since February 2024. However, a team of JPMorgan analysts led by Gokul Hariharan said sales "remain strong" and leads them to estimate 35% year-over-year growth for the quarter, in line with TSMC's own mid-30s percentage guidance.

"The strong revenue momentum is primarily driven by robust AI demand and better-than-expected iPhone 17 demand," said the JPMorgan analysts. "We believe this momentum will continue into 2026."

The analysts, nodding to the reports that Huang had asked TSMC to increase production of its N3, or 3-nanometer process technology, said supply of that would likely remain "very tight" throughout next year, thanks to demand from big names.

"Overall, we believe that N3 demand is likely to remain very strong, led by NVDA, Apple, Broadcom, QCOM, Amazon and Bitmain," they said, adding that TSCM's N3 revenues are likely to grow $46 billion in 2026, around 30% of total revenues, with "potential for upside."

November kicked off with the worst week for tech stocks since the April tariff selloff, with Nvidia shares taking a hit on worries about valuations linked to AI excitement. Down 9% last week, Nvidia shares are up 40% this year, while Taiwan Semi's U.S. shares lost 6% and are up around 45% for 2025.

-Barbara Kollmeyer

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