TLDR
- Nvidia CEO Jensen Huang called Taiwan Semiconductor (TSMC) “one of the greatest companies in the history of humanity” and said buying its stock is “very smart”
- TSMC is developing six new products for Nvidia, including the next-generation Rubin AI chip architecture
- U.S. Commerce Secretary is considering taking equity stakes in chipmakers receiving CHIPS Act funding, though reports suggest no plans for companies expanding U.S. investments
- TSMC’s Q2 revenue jumped 38.6% year-over-year to $30 billion, beating analyst expectations with strong AI and smartphone demand
- Nvidia paused production of China-focused H20 chips after Beijing raised security concerns, affecting suppliers like Foxconn
Taiwan Semiconductor received one of the highest endorsements possible from tech industry leader Jensen Huang during his recent visit to Taiwan. The Nvidia CEO told reporters that TSMC is “one of the greatest companies in the history of humanity.”
Huang went further, stating that “anybody who wants to buy TSMC stock is a very smart person.” This unusually direct investment advice came as he thanked the company for its work on Nvidia’s next-generation Rubin AI chip architecture.
The praise comes as TSMC continues to strengthen its partnership with Nvidia. The chip foundry is currently developing six new products for the graphics chip giant.

These include a new central processing unit and a new graphics processing unit designed for advanced AI computation. The collaboration highlights TSMC’s central role in powering the artificial intelligence revolution.
CHIPS Act and Government Stakes
Huang’s comments arrived at a particularly relevant time for U.S.-Taiwan tech relations. U.S. Commerce Secretary Howard Lutnick has been exploring the possibility of taking equity stakes in exchange for CHIPS Act funding.
Companies like TSMC, Micron, and Samsung could potentially face government investment requirements. The 2022 CHIPS Act allocated billions in grants and loans to chipmakers expanding U.S. production.
TSMC received a promise of $6.6 billion under the act to build three chip fabrication plants in Arizona. However, a Wall Street Journal report suggested the government has no plans to seek shares in companies increasing their U.S. investments.
TSMC announced in March that it would expand its U.S. investment to $165 billion. This massive commitment includes a “giga fab cluster” in Arizona expected to handle 30% of the company’s 2nm and beyond capacity.
Strong Financial Performance
TSMC’s second quarter results demonstrated why Huang holds the company in such high regard. Revenue reached $30 billion, representing a 38.6% increase compared to the same period last year.
The results easily beat analyst expectations. Earnings per share jumped 60.7% to $2.47, exceeding forecasts by 4.2%.
High-performance computing drove much of the growth, accounting for 60% of revenue. Smartphone chips contributed 27%, while IoT platforms and automotive each represented 5% of sales.
Advanced chip nodes continue to dominate TSMC’s business mix. Chips built on 3nm technology contributed 24% of wafer revenue.
The 5nm and 7nm processes added 36% and 14% respectively. Combined, nodes at 7nm and below made up 74% of total wafer sales.
The company maintained its strong cash position, ending the quarter with $90 billion in reserves. This financial strength supports TSMC’s aggressive global expansion plans.
Management forecasts third quarter revenue between $31.8 billion and $33 billion. Gross margins are expected to range from 55.5% to 57.5%.
CEO C.C. Wei acknowledged macroeconomic uncertainties, including potential U.S. tariffs and China’s industrial policies. Despite these challenges, the company reaffirmed its 2025 capital expenditure plan of $38 billion to $42 billion.
The spending will fund new facilities across multiple continents. TSMC is building 11 new fabs in Taiwan while expanding operations in Japan and Europe.
Wall Street analysts expect TSMC to generate $31.46 billion in third quarter revenue. Annual earnings per share growth of 32% to $2.56 is anticipated for the current quarter.
For the full year, profits are projected to rise 39.6% to $9.83 per share. Fiscal 2026 earnings are expected to climb another 11.6% to $10.97 per share.
China tensions created some uncertainty for Nvidia’s operations. The company asked component suppliers to pause production of H20 graphics processing units designed for the Chinese market.
Beijing raised security concerns about these chips, leading to the production halt. Foxconn was among the suppliers told to pause H20-related work according to Reuters reports.