By Nauman Khan
Publication Date: 2026-01-15 16:57:00
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) traded higher Thursday after a pair of developments that could lift demand for its AI chips: stronger-than-expected results and a bigger capital-spending plan from Taiwan Semiconductor Manufacturing (NYSE:TSM), and new U.S. rules on some chip exports.
Shares were up about 2% in morning trade, recovering from a modest slide the previous session.
TSMC said it will boost capital expenditure to roughly $52 billion to $56 billion for 2026, with part of the spending earmarked for packaging technology aimed at easing supply bottlenecks for finished chip systems. That outlook helped chip suppliers and equipment makers rally.
Separately, the White House set conditions allowing some advanced chips to be exported under licenses and imposed a 25% duty on certain semiconductors that are exported after bypassing domestic AI use, a move intended to protect U.S. manufacturing.
Beijing has reportedly told customs to bar Nvidia’s H200 chips and warned domestic firms against purchases unless necessary, a development that could curb near-term sales into China.
Market watchers said the twin developments may support longer-term AI demand even as short-term China restrictions create uncertainty.
