{"id":231169,"date":"2025-10-17T09:16:07","date_gmt":"2025-10-17T09:16:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/231169\/"},"modified":"2025-10-17T09:16:07","modified_gmt":"2025-10-17T09:16:07","slug":"nvda-avgo-mu-chip-stocks-gain-on-tsmcs-rosy-outlook-and-new-ai-deals","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/231169\/","title":{"rendered":"NVDA, AVGO, MU: Chip Stocks Gain on TSMC\u2019s Rosy Outlook and New AI Deals"},"content":{"rendered":"

Semiconductor<\/a> stocks edged higher on Thursday after Taiwan Semiconductor Manufacturing Co. (TSM)<\/a> reported strong quarterly results and lifted its 2025 outlook<\/a>, citing strong demand for artificial intelligence<\/a> (AI) chips. The upbeat report from the world\u2019s largest contract chipmaker, along with a series of new AI<\/a> partnership announcements across the industry, boosted sentiment in the sector. Major names like Nvidia Corporation (NVDA)<\/a>, Broadcom Inc. (AVGO)<\/a>, and Micron Technology, Inc. (MU)<\/a> all posted modest gains.<\/p>\n

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TSMC\u2019s Strong Results Ignite AI Optimism<\/p>\n

TSMC reported strong third-quarter results, driven by steady demand for advanced AI chips. Revenue rose 30.3% year over year to NT$989.9 billion<\/a>, or $33.1 billion in U.S. dollar terms, beating analyst estimates of $32.12 billion. Meanwhile,\u00a0net income climbed 39% to NT$452.3 billion, marking another record quarter for the chipmaker. <\/p>\n

The company said 3-nanometer chips made up 23% of wafer sales, while advanced nodes (7 nm and below) accounted for 74% of total revenue.<\/p>\n

Looking ahead, TSMC lifted its 2025 revenue growth outlook to the mid-30% range from around 30%. It also reaffirmed capital spending of up to $42 billion for the year. For the fourth quarter, TSMC expects revenue between $32.2 billion and $33.4 billion, with gross margins in the range of 59% to 61%, supported by steady AI chip demand.<\/p>\n

Analysts\u2019 Comments Post TSMC\u2019s Q3 Results<\/p>\n

Several analysts believe TSMC\u2019s upbeat forecast reinforces the view that AI infrastructure demand remains resilient despite broader macro concerns. Morgan Stanley said the semiconductor sector is entering a \u201cnew phase of AI-driven capital spending,\u201d while Wedbush noted that TSMC\u2019s results \u201cvalidate continued investment in advanced nodes and AI capacity.\u201d<\/p>\n

Partnerships and AI Build-Out Drive Sector Gains<\/p>\n

The rally was further supported by new AI partnerships across the industry. Nvidia gained after reports that Microsoft (MSFT)<\/a> and Oracle (ORCL)<\/a> plan to deploy tens of thousands of Nvidia GPUs next year to power enterprise AI systems. Broadcom also gained after confirming steady demand for its AI networking chips used in large data centers.<\/p>\n

Meanwhile, Micron rose on optimism that its high-bandwidth memory (HBM) products will see stronger pricing in 2025. On Thursday, analysts at UBS and Citi raised their price targets and reiterated Buy ratings, citing expectations that Micron will benefit from a global shortage of DRAM (dynamic random access memory) chips.<\/p>\n

Which Chip Stock Is the Best Buy?<\/p>\n

Turning to Wall Street sentiment, out of the four stocks mentioned above<\/a>, Nvidia, Broadcom, Micron, and TSMC \u2014 hold Strong Buy ratings from analysts. Among them, Nvidia offers the highest upside potential at 23%, followed by Broadcom with about 11%, TSMC with nearly 10%, and Micron with around 4%. Each stock carries a top Smart Score<\/a> of 9 or 10, signaling strong analyst confidence and continued momentum across the semiconductor sector.<\/p>\n

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