Nvidia CEO Jensen Huang Calls AI ‘Insanely Profitable’ for TSMC. How to Play TSM Stock Here. - Yahoo Finance

At COMPUTEX 2026, NVIDIA CEO Jensen Huang declared that artificial intelligence (AI) has become 'insanely profitable' for Taiwan Semiconductor Manufacturing Company (TSMC), underscoring TSMC's central... Read original →

Jensen Huang’s remark at COMPUTEX 2026 that AI is 'insanely profitable' for TSMC (Taiwan, China) underscores how process leadership has morphed into structural pricing power. Mass adoption of EUV at 3nm and 2nm not only raises capital intensity and yield barriers but locks in clients like AMD and Apple into long-term capacity commitments, reinforcing a manufacturing-architecture-ecosystem loop. While TSMC’s Arizona fab begins 2nm pilot runs, U.S. compliance and localization costs inflate operating expenses by 15–20%, eroding near-term margins. In response, Intel is doubling down on its IDM 2.0 revival, and Samsung is accelerating GAA transistor commercialization. Yet TSMC’s CoWoS and SoIC integration platforms are creating a second moat. Over the next 18 months, AI infrastructure capex will increasingly favor leading-edge foundries, enabling TSMC to capture over 70% of premium AI accelerator outsourcing—if it sustains gross margins above 60% to justify its premium valuation.