{"id":401829,"date":"2026-01-11T22:21:14","date_gmt":"2026-01-11T22:21:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/401829\/"},"modified":"2026-01-11T22:21:14","modified_gmt":"2026-01-11T22:21:14","slug":"nvidia-ceo-sends-strong-message-on-taiwan-semiconductor","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/401829\/","title":{"rendered":"Nvidia CEO sends strong message on Taiwan Semiconductor"},"content":{"rendered":"\n

Nvidia<\/a> (NVDA<\/a>) CEO Jensen Huang<\/a> has just cut through the big debate over AI<\/a> chipmaking, saying that the future of advanced chips runs through Taiwan.<\/p>\n

By extension, it still runs through the crown jewel of the chipspace in Taiwan Semiconductor Manufacturing (TSM<\/a>), regardless of the number of fabs being announced elsewhere.<\/p>\n

In an interview with The Times<\/a> (UK), Huang made it clear that the efforts to diversify production need to be viewed from an angle of resilience, not replacement.<\/p>\n

Over the past year or so, we\u2019ve seen the U.S. adding capacity alongside Europe, but the deep, decades-long ecosystem producing advanced silicon remains concentrated.<\/p>\n

Nevertheless, the AI trade continues to evolve, and Mr. Market is getting selective.<\/p>\n

Over the past week, memory stocks stood out, with Micron Technologies delivering nearly a 10% gain on the back of the growing demand\/supply imbalance in its space.<\/p>\n

TSM stock held steadier, but over the past six months has delivered almost a 40% gain.<\/p>\n

Zooming out, the semiconductor space, represented by the SOXX<\/a> ETF, posted a super 5% gain over the past week, with investors betting on \u201cpicks-and-shovels\u201d names such as Applied Materials, among others.<\/p>\n

Meanwhile, AI bellwethers like Nvidia, which is coming off another ambitious CES showing, have mostly been sluggish.<\/p>\n

Since I last covered Nvidia on January 7, 2026, it has fallen from $189.11 to $184.86 as of January 9, 2026 (-2.25%).<\/p>\n

Nevertheless, recent market moves have shown the AI trade is alive and well, and Huang\u2019s comments have added fuel to the fire.<\/p>\n

\"<em>Comments Comments from Nvidia CEO highlight why Taiwan Semiconductor remains pivotal amid rising AI bubble concerns.Photo by PATRICK T&period; FALLON on Getty Images <\/p>\n

Huang said in a Time interview<\/a> that the reshoring initiatives from the U.S. and other countries have more to do with insurance than with substitution.<\/p>\n

In doing so, he hailed Taiwan as being structurally central to the development of advanced computing over the next several years.<\/p>\n

For perspective, the Semiconductor Industry Association\u2019s report<\/a> from July last year said that an incredible 100+ projects in 28 states had been announced, totaling over half a trillion dollars in private investment, with U.S. chip capacity expected to triple by 2032.<\/p>\n

More Nvidia:<\/p>\n

That view lands squarely on TSMC, which is clearly at the center of Nvidia\u2019s latest chips and the bulk of the AI supply chain<\/a>.<\/p>\n

Huang said that Taiwan\u2019s advantage isn\u2019t just linked to cutting-edge nodes, but spearheaded by a potent ecosystem of suppliers, packaging, talent, and speed.<\/p>\n

That reality reinforces TSMC\u2019s robust positioning as a critical backbone of the AI buildout, having less to do with the near-term cycle noise or bubble-related debates.<\/p>\n

Fears about the AI bubble are growing louder as spending numbers surge and stock valuations skyrocket.<\/p>\n

For perspective, Nvidia stock boasts a market cap<\/a> of about $4.5 trillion<\/a>, having added more than $1 trillion since the start of 2025.<\/p>\n

Despite those jaw-dropping figures, Huang feels investors are looking at it the wrong way. He says what looks like excess is actually the early phase of a deeper shift in computing itself.<\/p>\n

Clearly, AI spending is enormous,\u00a0 which can be seen from the latest capex figures from the Big 3 hyperscalers:<\/p>\n

Amazon (AWS): CFO Brian Olsavsky said the tech giant expects full-year 2025 capex of nearly $125 billion (and higher in 2026), largely due to AI projects, Reuters<\/a> reported.<\/p>\n

Microsoft (Azure): Microsoft reported nearly $35 billion in capex in its fiscal Q1 2026, according to Reuters<\/a>, warning that spending will continue rising as it builds AI data-center capacity.<\/p>\n

Alphabet (Google Cloud): Alphabet bumped 2025 capex guidance<\/a> to a whopping $91 billion to $93 billion, linked to AI\/cloud demand. (Source:Reuters<\/a>)<\/p>\n

Additionally, Huang describes AI as a wholesale shift from general-purpose computing to accelerated computing, spearheaded by AI agents, models, and applications that are layered above that foundation.<\/p>\n

Additionally, Huang pushed back on the concerns that Nvidia\u2019s ecosystem investing creates some systemic risk.<\/p>\n

Given the current dynamics, TSMC controls the bottlenecks in the AI supply chain, and that rare pricing power is showing its fundamentals<\/a>.<\/p>\n

As of Q3 2025, HBM made up a massive 57% of sales, with its cutting-edge 3nm nodes at 23% of wafer sales only a few quarters into ramp.<\/p>\n

Also, as we witness a ramp-up in 2nm wafer production soon, and them being priced over\u00a0 $30,000 along with 5%\u201310% hikes on sub-5nm nodes, customers like Nvidia and Apple have little choice but to pay.<\/p>\n

Related: Top analyst drops eye-popping price target on ASML stock<\/a><\/p>\n

This story was originally published by TheStreet<\/a> on Jan 11, 2026, where it first appeared in the Technology<\/a> section. Add TheStreet as a Preferred Source by clicking here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia (NVDA) CEO Jensen Huang has just cut through the big debate over AI chipmaking, saying that the…\n","protected":false},"author":2,"featured_media":401830,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[106372,28,11379,4321,3998],"class_list":["post-401829","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-advanced-computing","tag-business","tag-jensen-huang","tag-nvidia","tag-taiwan"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/401829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=401829"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/401829\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/401830"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=401829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=401829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=401829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}