Nvidia Stock Dips On OpenAI Funding Issues | Investor's Business DailyBREAKING: [Stocks Swing Higher; Disney, Oracle Are Early Movers]---Nvidia (NVDA) stock dipped Monday on conflicting news reports that the artificial intelligence chipmaker lacked confidence in major customer OpenAI and might have doubts about how much to fund it. The Wall Street Journal reported Friday that Nvidia's plan to invest up to $100 billion in OpenAI to help it train and run AI models had stalled. Nvidia insiders expressed…## Rel ...

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is significantly investing to meet the growing demand for AI chips, with a planned capital expenditure of up to $56 billion, indicating strong confidence in sustained AI demand despite some caution from its CEO [2][4][5]. Company Overview - TSMC holds a dominant market share in the logic chip market, essential for AI computing, and is increasing production capacity to meet demand [2]. - The company's stock has increased over 300% since the start of the AI race in 2023, yet it is still considered undervalued compared to major tech companies [7][8]. Financial Performance - TSMC's revenue rose by 26% year over year during its last quarter, and it trades at 25 times forward earnings, which is competitive compared to the broader market [8][10]. - The company projects nearly 30% revenue growth by 2026 and expects a compound annual growth rate (CAGR) of 25% through 2029 [11]. Market Dynamics - Continued spending by AI hyperscalers on data centers is crucial for maintaining elevated demand for TSMC's chips, with projections indicating growth in data center buildouts through at least 2030 [12]. - The overall market environment shows that major tech companies trade at about 30 times forward earnings, while TSMC's growth rate is expected to accelerate, making it a potentially stronger investment [8][10].

Core Viewpoint - Taiwan Semiconductor Manufacturing Co. (TSMC) is set to accelerate its expansion in Arizona, driven by strong earnings and a new U.S.-Taiwan trade agreement, with a commitment of $100 billion for U.S. manufacturing [1] Group 1: Financial Commitments and Investments - TSMC has already committed $165 billion in the U.S. to support domestic chip manufacturing, with plans for further increases in spending to meet the demand for artificial intelligence chips [2] - The company forecasts a capital expenditure increase of over 30% at the midpoint for the upcoming year compared to 2025 [4] Group 2: Strategic Expansion Plans - TSMC is expanding its capacity in both Taiwan and the U.S. to capitalize on the AI mega trend, with plans to build a "gigafab cluster" in Arizona [3] - The company has recently acquired additional land in Arizona to facilitate its expansion efforts [3]

Core Viewpoint - TSMC, the world's largest manufacturer of advanced artificial intelligence chips, is projected to achieve a 28% increase in fourth-quarter net profit, reaching a record high due to sustained strong demand [1] Group 1 - TSMC is expected to report a net profit of a record high in the fourth quarter [1] - The anticipated profit increase is driven by ongoing strong demand for AI chips [1]

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of billionaire David Tepper’s top stock picks heading into 2026. On December 10, analysts at Bernstein SocGen Group reiterated an Outperform rating and a $330 price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). The positive stance is in response to the company tracking ahead of its fourth quarter guidance and consensus estimates. Bernstein Asserts Outperform Rating as Taiwan Semiconductor Manufacturing Company ...

Core Insights - Nvidia has developed location verification technology to identify the country of operation for its chips, which aims to prevent the smuggling of its artificial intelligence chips into countries where exports are restricted [1] Group 1 - The technology could help Nvidia comply with export regulations by ensuring its chips are not used in prohibited regions [1] - This move reflects Nvidia's proactive approach to managing geopolitical risks associated with its products [1]

Core Viewpoint - The stock price of Broadcom has increased due to rumors regarding a potential business deal with Microsoft, which may involve Broadcom taking over the AI chip business currently handled by Marvell Technology [1][3]. Group 1: Stock Performance - Broadcom shares rose by 3.9% on positive AI news, reaching a current price of $399.28 [1][4]. - The market capitalization of Broadcom is approximately $1.843 trillion, with a day's trading range between $397.50 and $407.28 [4]. Group 2: Analyst Opinions - JPMorgan analyst Harlan Sur maintains that Microsoft's contract with Marvell is "solidly intact," suggesting skepticism about the rumors [3]. - Despite the uncertainty, investors are reacting to the rumors by buying Broadcom stock and selling Marvell, which has seen a decline of over 7% [3]. Group 3: Valuation Concerns - Broadcom's stock is currently priced at 74 times trailing free cash flow and 97.5 times trailing earnings, indicating a high valuation [6]. - Analysts project a long-term earnings growth rate of about 31% for Broadcom, resulting in a PEG ratio exceeding 3.0, which raises concerns about the stock being overpriced if the rumored deal does not materialize [6][7].

Group 1 - Baidu has unveiled two new artificial intelligence chips [1] - The launch is part of a broader trend among Chinese tech giants to enhance their chip-making capabilities [1] - This initiative aligns with China's strategic goal of achieving technological self-sufficiency [1]

Group 1: Market Performance - Asian stocks ended higher, with Japan closed for a public holiday [1] - China's Shanghai Composite index rose 0.55% to 3,976.52 despite disappointing PMI data [2] - Hong Kong's Hang Seng index jumped 0.97% to 26,158.36, supported by stabilization in the banking sector's Q3 earnings [2] - Seoul's Kospi average surged 2.78% to 4,221.87, breaching the 4,200 mark for the first time [3] - Australian markets ended modestly higher, with the S&P/ASX 200 edging up 0.15% to 8,894.80 [4] - New Zealand's S&P/NZX-50 index finished marginally higher at 13,556.30, marking its seventh consecutive gain [4] Group 2: Economic Indicators - China's manufacturing PMI dropped to 50.6 in October from 51.2 in September [2] - Gold prices edged higher as the dollar eased from a near three-month high ahead of key employment data [5] - Oil prices rose after OPEC+ decided to hold production steady in early 2026 [5] Group 3: Company Developments - Samsung Electronics shares climbed 3.4%, while SK Hynix soared 10.9% following Nvidia's announcement to supply AI chips to South Korea [3] - Amazon reported strong quarterly results, contributing to a mostly higher session for U.S. stocks [6] - Netflix's board approved a ten-for-one stock split, impacting its stock performance [6]

Group 1 - Nvidia, a leader in artificial intelligence chips, will invest up to $1 billion in AI startup Poolside [1] - The investment reflects Nvidia's commitment to expanding its influence in the AI sector [1] - This move is part of a broader trend of major tech companies investing in AI startups to enhance their capabilities [1] Group 2 - The investment in Poolside is expected to accelerate innovation and development in AI technologies [1] - Nvidia's financial backing could provide Poolside with the necessary resources to scale its operations [1] - This partnership may lead to new advancements in AI applications, benefiting both companies [1]