By Unknown
Publication Date: 2026-02-12 20:29:00
Nvidia (NASDAQ: NVDA) has played a pioneering role in artificial intelligence (AI) technology for more than three years now, which is not surprising as its chips have helped train popular large language models (LLMs) and move those models into production.
However, Nvidia has been losing steam of late. The semiconductor stock is up just 3% in the past six months, driven by multiple concerns such as its valuation, the sustainability of high AI data center spending, and circular financing deals. But there’s another semiconductor bellwether that has outperformed Nvidia during this period — Taiwan Semiconductor Manufacturing(NYSE: TSM).
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Let’s see why TSMC stock has jumped over 43% in the past six months and is capable of outperforming Nvidia in 2026 as well.
Image source: TSMC.
TSMC is the driving force behind the AI chip revolution
There is no denying that Nvidia’s chip systems have been the building blocks of the global AI revolution. However, it is worth noting that TSMC has played a central role in helping Nvidia dominate the AI chip market.
That’s because Nvidia is a fabless chipmaker, which means that it only designs and sells chips. It needs to go to a foundry — TSMC, in this case, to get those chips manufactured. TSMC’s advanced chip nodes have allowed Nvidia to turn its chip designs into reality. More…