Nvidia Is Surging Today -- Is the Stock a Buy in 2026?

Core Viewpoint - Nvidia's stock is experiencing significant gains following a positive business update from Taiwan Semiconductor Manufacturing (TSMC), indicating strong demand for AI chip fabrication and boosting investor confidence in Nvidia's growth potential [1][2][4]. Group 1: TSMC's Earnings Impact - TSMC reported fourth-quarter earnings that exceeded Wall Street expectations, with non-GAAP earnings per share of $3.14 on sales of $33.7 billion, surpassing analyst estimates of $2.98 per share and $32.73 billion in revenue [3]. - The strong performance from TSMC suggests robust demand for AI chip fabrication, which is a positive indicator for Nvidia's ongoing demand for its processors [4]. Group 2: Nvidia's Market Position - Following the gains, Nvidia's market capitalization reached approximately $4.59 trillion, with a valuation of about 21.5 times expected sales and 40 times expected earnings for the year [5]. - Despite concerns about potential slowdowns in AI infrastructure spending, TSMC's strong Q4 report has provided a renewed buy signal for risk-tolerant investors in Nvidia stock [5].