The latest results and guidance from Nvidia (NVDA) are not only good for the company and its investors, but they’re also a “green flag” for Taiwan Semiconductor (TSM), Wedbush Securities said.
“The AI momentum that has been driving demand for TSMC’s advanced processes appears fully intact,” Wedbush analyst Matt Bryson wrote in a note to clients regarding Nvidia’s results. Bryson has an Outperform rating on Nvidia and upped his price target to $230 from $210 after the results.
Bryson also pointed out that the entire hardware complex and, in particular, those that are considered commodities, also have a “green flag” from Nvidia. “The hardware complex has been driving strength across our hardware universe,” Bryson added. “And, we see NVDA’s numbers as particularly good for commodity vendors that have been enjoying strong positive trends in pricing given better than expected demand driven by AI requirements, with limited means to scale production suggesting in our view that strength should continue (assuming AI demand trends remain intact).”
