Shares of key Nvidia suppliers surged on Tuesday following the U.S. semiconductor leader’s announcement of a substantial investment plan in OpenAI to expand artificial intelligence datacenter capabilities.
Nvidia, currently at the forefront of AI chip development, revealed it would allocate up to $100 billion to advance OpenAI’s datacenter infrastructure—an initiative that entails delivering its cutting-edge datacenter processors and deploying no less than 10 gigawatts of computing power as part of the collaboration.
This ambitious project is seen as a significant boost for Nvidia’s extensive supply ecosystem. Taiwan Semiconductor Manufacturing Co. (TSMC), which is responsible for fabricating Nvidia’s advanced chips, stands to benefit from increased production orders. Similarly, Foxconn—whose formal name is Hon Hai Precision Industry—could see heightened demand for its hardware assembly and server manufacturing operations, according to sources familiar with the agreement.
Investors responded swiftly in Asian markets. TSMC’s shares climbed 3.5% on Tuesday, reaching a record NTD 1,340, while Foxconn advanced 2.5% to NTD 222, marking its highest closing price in over a year.
Nvidia’s multi-billion-dollar investment not only reinforces its commitment to driving AI innovation but also secures near-term growth prospects for its network of contracted manufacturers and foundry partners.
