Nvidia's latest AI chips likely to "leverage" TSMC technology - Goldman Sachs

Investing.com -- Taiwan Semiconductor Manufacturing Company (TW:2330) is set to be bolstered by the latest wave of artificial intelligence-optimized chips announced by Nvidia (NASDAQ: NVDA), according to analysts at Goldman Sachs.

In an unexpected move over the weekend, California-based Nvidia revealed its latest chip architecture, calling it "Rubin." Slated to begin shipping in 2026, Rubin's unveiling comes before the company's next generation of data center processors -- dubbed "Blackwell" -- has even started to be rolled out.

Blackwell itself is being produced only a little over a year after Nvidia's current "Hopper" chips were announced.

Nvidia, which has added around $350 billion in market value since it reported yet another quarter of bumper revenue last month, is racing to combat competition from rivals Advanced Micro Devices (NASDAQ: AMD) and Intel (NASDAQ: INTC), as well as in-house chips made by tech giants like Google-owner Alphabet (NASDAQ: GOOGL) and software titan Microsoft (NASDAQ: MSFT).

The Goldman Sachs analysts argued in a note that semiconductor contract manufacturer TSMC's powerful 3-nanometer nodes will likely be "leveraged" by Nvidia in the Rubin platform "given the ongoing pursuit of more advanced chip performance." The product after Rubin, they added, could utilize TSMC's cutting-edge 2-nanometer chips as well.

"We sense that the overall sentiment among investors towards AI is still positive, with more future new applications to emerge beyond just AI chatbot[s] [like] [OpenAI's] ChatGPT," the Goldman analysts said. "From our point of view, we see TSMC as the key beneficiary under the AI trend, given its solid leadership stance in leading-edge processing for chip manufacturing in meeting the increasingly higher power/computing demand of chip performance for AI applications."

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