NVIDIA Corporation

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Bullish +65

TSMC Sales Jump 36% as Memory Stocks Plunge. What It Means for NVIDIA and AMD

AI-generated analysis

📈 TSMC quarterly sales surged 36% with June monthly revenue hitting roughly 442 billion Taiwan dollars, up 67.9% year over year.

💾 Memory stocks like SK Hynix plunged 13% in the same session due to oversupply concerns and profit-taking.

🏭 TSMC's N3 nodes are reported sold out, with three new Chiayi facilities projected to generate over NT$300 billion in annual output.

💰 NVIDIA posted Q1 FY2027 revenue of $81.6B (up 85.2%) and non-GAAP EPS of $1.87 versus $1.77 expected.

📉 NVIDIA shares dipped 1.99% to $206.77 on the day, tracking broader Asia weakness despite strong earnings.

🚀 AMD reported Q1 2026 revenue of $10.25B (up 57%) and non-GAAP EPS of $1.37 versus $1.29 expected.

🤝 AMD secured multi-gigawatt AI commitments from OpenAI and Meta for its MI450 series chips.

📊 AMD shares are up 286.99% over the past year but dropped 2.64% to $543.14 on the day of TSMC news.

⚠️ Investors are watching whether the memory selloff pressures HBM pricing, which could affect NVIDIA and AMD's cost structures.

🔮 TSMC's sold-out N3 capacity points to continued strength in demand for advanced AI chips.

Bullish Signals
  • TSMC quarterly sales jumped 36% with June revenue up 67.9% year over year, demonstrating robust foundry demand.
  • NVIDIA reported Q1 FY2027 revenue of $81.6B, an 85.2% increase, and non-GAAP EPS of $1.87 beating analyst expectations.
  • AMD achieved a 6.2% EPS surprise with Data Center revenue climbing 57% year over year to $10.25B.
  • NVIDIA's CEO described the AI factory buildout as the largest infrastructure expansion in human history, indicating massive scale.
  • AMD has secured multi-gigawatt AI commitments from major clients OpenAI and Meta for its MI450 series.
  • TSMC's N3 production capacity is reportedly sold out, signaling sustained high demand for advanced nodes.
  • NVIDIA shares are up approximately 28.72% over the past year reflecting strong market sentiment.
  • AMD shares have gained 160.5% year to date and 286.99% over the past year.
Risk Factors
  • NVIDIA shares traded down 1.99% on the day of TSMC's earnings due to broader Asian market weakness.
  • AMD shares dropped 2.64% to $543.14 amid sector-wide semiconductor volatility and anxieties about AI capex slowdowns.
  • Memory stocks like SK Hynix fell 13% in the same session, raising concerns about oversupply in the memory sector.
  • The potential for a memory selloff to pressure HBM pricing could negatively impact the cost structure of NVIDIA's Blackwell and AMD's Instinct accelerators.
Full Analysis
TSMC reported a significant surge in quarterly sales, jumping 36% with June monthly revenue reaching approximately 442 billion Taiwan dollars, up 67.9% year over year. This performance occurred despite a broader decline in memory stocks like SK Hynix, which fell 13% amid oversupply concerns. The divergence highlights that foundries serving AI customers are benefiting from steady long-term demand while memory names face headwinds. NVIDIA posted robust financial results for Q1 FY2027, reporting revenue of $81.6 billion, an 85.2% increase year over year, with non-GAAP EPS of $1.87 beating expectations. CEO Jensen Huang characterized the AI factory buildout as the largest infrastructure expansion in human history. However, NVIDIA shares traded down nearly 2% on the day due to broader Asian market weakness and sector volatility, despite the strong underlying earnings beat. AMD also delivered strong performance with Q1 2026 non-GAAP EPS of $1.37, beating estimates by 6.2%, and revenue rising 57% year over year to $10.25 billion, driven largely by Data Center growth. The company secured multi-gigawatt AI commitments from major clients like OpenAI and Meta for its MI450 series. Shares are up significantly over the past year but experienced a pullback on the day of TSMC's earnings due to sector-wide semiconductor volatility. The article suggests that TSMC's sold-out N3 production capacity signals continued strength in demand for advanced chips, though investors should monitor whether the memory selloff pressures HBM pricing. Any shift in HBM costs could impact the cost structure for NVIDIA's Blackwell and AMD's Instinct accelerators, making TSMC's outlook a critical indicator for the health of the broader AI supply chain.