Nvidia announced quarterly earnings on August 26. TSMC, its primary chip manufacturer, saw a 0.83% stock increase on August 27, 2026. Analysts suggest the AI boom's impact on TSMC is already priced into the stock. This leaves little room for a surprise rally.
Concerns exist regarding potential future margin compression for TSMC. Rising costs for components, such as high-bandwidth memory, could prompt Nvidia to seek pricing concessions from TSMC. This would protect Nvidia's profit margins.
Separately, Apple introduced its first 2-nanometer M6 chip. TSMC manufactures this chip using its advanced packaging technology. This development prompts an expansion of TSMC's capacity.