Taiwan Semiconductor Just Delivered Encouraging News for Nvidia Shareholders

By Bram Berkowitz – Feb 10, 2026 at 2:12PM ESTKey PointsTaiwan Semiconductor is the primary manufacturer of several models of Nvidia's chips.The company recently announced strong January sales.Nvidia and the rest of the artificial intelligence sector have faced questions about overall demand.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: NVDANvidiaMarket Cap$4.6TToday's Changeangle-down(-0.45%) $0.86Current Price$189.18Price as of February 10, 2026 at 3:43 PM ETNvidia's stock has not moved much over the past six months, which is why good news is welcome, especially with earnings on the horizon.In a time when artificial intelligence stocks and valuations are being called into question, shareholders of Nvidia (NVDA 0.45%), the AI chip king, are looking for good news, especially as the company's upcoming earnings report on Feb. 25 approaches. While Nvidia stock has been an incredibly strong performer, it's roughly flat this year and only up about 4.3% over the past six months. Taiwan Semiconductor (TSM +1.63%) may have just provided the spark Nvidia shareholders were looking for. The massive chip manufacturer just announced that its January sales rose nearly 37% year over year. That number is above the company's historical average and pushed the stock to all-time record levels. Image source: Nvidia. Why is this good for Nvidia?

Because Taiwan Semiconductor is the primary manufacturer of Nvidia chips, so strong sales by the company could be indicative of strong demand for Nvidia's chips. Now, keep in mind that Taiwan Semiconductor manufactures chips for other companies, including Advanced Micro Devices, Broadcom, and Qualcomm, but strong chip demand should bode well for Nvidia, given its dominance in the market. Shareholders should be encouraged. Here's why. Other positive news out of Taiwan The positive update from Taiwan Semiconductor is the latest in a string of positive indicators. Analysts at UBS recently noted that Taiwan's Ministry of Finance released January export data, which showed that automatic data-processing (ADP) equipment excluding laptops increased by 8% from December. Normally, January data has shown a declined from December. Additionally, Taiwan's ADP exports in the fourth fiscal quarter grew 25% from the third quarter. Meanwhile, UBS is only projecting 18% quarterly growth in Nvidia's all-important data center division, which provides infrastructure to power AI workloads. Now, this doesn't guarantee that Nvidia will have a blowout quarter, and one can never predict what the market will hone in on when Nvidia reports earnings or how it will react. Still, this piece of macro data is positive for Nvidia and could position the company for strong quarterly results, which may get the stock going again. ExpandNASDAQ: NVDANvidiaToday's Change(-0.45%) $-0.86Current Price$189.18Key Data PointsMarket Cap$4.6TDay's Range$188.12 - $192.4852wk Range$86.62 - $212.19Volume3.3MAvg Vol182MGross Margin70.05%Dividend Yield0.02% Now, Nvidia's stock is still up nearly 42% in the past year and over 1,167% in the past five years. But the valuation has also come down significantly, with the stock trading at less than 25 times forward earnings, well below its five-year historical average of close to 35 times forward earnings. While practically no one can predict near-term catalysts that will drive stock prices, this presents a favorable setup heading into Nvidia's fiscal 2026 fourth-quarter earnings report, and also likely not a bad time for long-term investors to consider buying as well. Read NextFeb 10, 2026 •By Adam SpataccoShould You Buy the Dip in Nvidia Stock?Feb 10, 2026 •By Neil PatelIs Nvidia a Buy?Feb 10, 2026 •By Jennifer SaibilAmazon CEO Andy Jassy Just Gave Nvidia Investors Great NewsFeb 10, 2026 •By Keithen DruryAMD vs. Nvidia: Which AI Stock Will Outperform in 2026?Feb 10, 2026 •By Chris NeigerWhy Artificial Intelligence (AI) Adoption Is Accelerating Faster Than Wall Street ExpectedFeb 9, 2026 •By Dave KovaleskiGot $5,000? 2 Top Growth Stocks to Buy That Could Double Your Money.About the AuthorBram Berkowitz is a contributing Motley Fool stock market analyst covering financials, technology, consumer goods, and macroeconomic trends.

Before The Motley Fool, Bram worked in equity research covering bank stocks and as a reporter for local publications. He holds FINRA Series 7 and 66 licenses, as well as a bachelor’s degree in business with a minor in economics from Syracuse University.TMFBramX@BramBerkoStocks MentionedNvidiaNASDAQ: NVDA$189.18 (0.45%) $0.86Taiwan Semiconductor ManufacturingNYSE: TSM$361.20 (+1.63%) $+5.79Advanced Micro DevicesNASDAQ: AMD$213.76 (1.03%) $2.23QualcommNASDAQ: QCOM$140.04 (+0.80%) $+1.11BroadcomNASDAQ: AVGO$340.35 (1.04%) $3.59UBSNYSE: UBS$43.84 (1.34%) $0.59*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.