Why AMD and Taiwan Semiconductor Stocks Followed Nvidia Higher Today
Nvidia (NASDAQ: NVDA) is getting much of the credit for the gains in Taiwan Semiconductor Manufacturing (NYSE: TSM) and Advanced Micro Devices (NASDAQ: AMD) shares today. Nvidia's encouraging fourth-quarter report is sending its stock higher on Thursday, and since AMD and Taiwan Semiconductor are in the same business, they are likely catching the same tailwind.
But that's not the only reason AMD and TSMC shares were up 3.1% and 3.8%, respectively, as of 1:58 p.m. ET on an otherwise tepid day for the market. Also boosting these tickers is the chipmaking initiative started by last year's passage of the CHIPS and Science Act -- and in particular, comments by Commerce Secretary Gina Raimondo on domestic chipmaking today.
Nvidia's fourth-quarter earnings beat is the main reason the stock was rallying as much 15% as of midday on Thursday. And that made it easier for related stocks to move higher.
Source Fool.com
