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Investing.com-- Shares of Nvidia (NASDAQ:NVDA) suppliers like Taiwan Semiconductor Manufacturing Co (TSMC) (TW:2330) and Foxconn (TW:2317) rose on Tuesday, after the U.S. chip giant unveiled plans to invest up to $100 billion in OpenAI to build out AI datacenter infrastructure.
Nvidia’s commitment includes delivering data center chips and deploying at least 10 gigawatts of computing power under the partnership.
The deal is expected to drive demand for TSMC’s chip fabrication capacity and for Foxconn’s hardware assembly and server manufacturing services.
In Asian trading on Tuesday, TSMC’s stock rose 3.5%, hitting a fresh record high of NTD 1,340.
Shares of Foxconn, formally known as Hon Hai Precision Industry, gained 2.5% to NTD 222, their highest level in over a year.
The scale of Nvidia’s investment locks in a demand pathway for its ecosystem of hardware suppliers, including foundries and contract manufacturers.