Here’s why Taiwan semiconductor and Nvidia stocks are on the move

Shares of  Taiwan Semiconductor (NYSE:TSM) were on the move Thursday after the world’s leading semiconductor chip foundry posted robust sales growth results in September.

The firm reported September revenue of NT$331 billion, with NT representing New Taiwan currency. In USD, that translates to about $10.8 billion.

While this was down 1.4% from August 2025, it marked a 31% year-over-year increase compared to August 2024.

For the year, from January through September, Taiwan Semiconductor has generated NT$2.76 trillion in revenue, which would be about $90 billion in USD. That is 36% higher than the same period a year ago.

TSM stock is up 48% YTD

Taiwan Semiconductor will report full third quarter earnings on October 16. Based on the roughly 30% sales increases that the company reported in each of the past three months, it should be another strong quarter for the foundry.

Taiwan Semiconductor stock opened higher on Thursday, rising about 1% to $304 per share, but then by afternoon it had fallen roughly 2% to $298 per share. The up and then downward movement likely had more to do with profit-taking by investors after another strong result.

Taiwan Semiconductor stock has been on a tear this year, up 48% year-to-date and 60% over the past 12 months. This week along it had been up about 4% before the Thursday afternoon decline.

Taiwan Semiconductor helps Nvidia stock move higher

Nvidia (NASDAQ:NVDA) was also rising on Thursday, and it likely had a lot to do with Taiwan Semiconductor’s revenue increase.

As the leading foundry, Taiwan Semiconductor makes chips for other companies that design and produce them. Nvidia just happens to be one of Taiwan Semiconductor’s largest clients, along with Apple (NASDAQ:AAPL).

Apple had long been Taiwan Semi’s biggest client, but now Nvidia is roughly equal with Apple. According to some analysts, Nvidia accounts for approximately 20% of Taiwan Semiconductor’s total revenue.

So, when investors see strong revenue numbers for Taiwan Semiconductor, they assume that high demand for Nvidia’s chips has a lot to do with it. That’s why Nvidia stock jumped 4% in early trading on Thursday and was up about 2% to $193 per share later in the day.

Following the news, Taiwan Semiconductor stock got a price target upgrade from Barclay’s on Thursday to $330 per share, from $325. That would suggest about 11% upside over the next 12 months.

Taiwan Semiconductor stock is a consensus buy among analysts, sitting at the center of booming the AI chipmaking industry. It also trades at a reasonable forward P/E of 25.