Nvidia Stock Price Forecast as TSMC Surges to Record High

Nvidia stock price has rebounded over the past few weeks, moving from a low of $170 in December to its current $190. This rebound could accelerate in the near term as Taiwan Semiconductor Manufacturing Company (TSMC) stock jumped to a record high following an upgrade by Goldman Sachs analysts.

Nvidia Stock Price May Benefit From TSMC Momentum

One of the potential catalysts for the Nvidia stock price will be the ongoing growth of Taiwan Semiconductor Manufacturing Company’s stock. The TSMC stock price soared 3.20% in the pre-market, reaching a record high of $330. That pushed its market capitalization to over $1.72 trillion.

TSMS stock jumped after analysts at Goldman Sachs boosted the target price by 35% to NT$2,330. The analysts noted that demand for semiconductors has continued to grow this year.

TSMC’s developments are usually important for Nvidia because it is one of its biggest clients. As such, its growth could be a sign that the AI boom will continue this year.

The Goldman Sachs upgrade came a week after Reuters reported that Nvidia had placed a large order for its H200 chips from TSMC, as Chinese demand surged.

In its report, Reuters noted that Chinese tech firms had placed orders of 2 million H200 chips. That’s much higher than Nvidia’s inventory of 700,000 units. The manufacturing of these new chips will begin in the second quarter of this year.

Nvidia Growth Momentum to Continue

The soaring optimism surrounding TSMC is a sign that Nvidia’s business will continue to boom this year, just as it did in 2025.

Data compiled by Yahoo Finance indicates that Wall Street analysts expect Nvidia’s fourth-quarter revenue to reach $65.5 billion. That’s significantly higher than the $57 billion it reported in the second quarter. This revenue will bring its annual figure to $213 billion, representing a 63% annual increase.

The revenue estimate is important as Nvidia has not started selling its chips in China. Donald Trump has given it the green light, though.

Analysts expect Nvidia’s business to continue performing well this year. Its annual revenue is expected to increase to $319 billion, up 50% from last year’s figure. The actual report will likely be much better than expected, as the company has constantly done better than estimates for years.

At the same time, there are signs that Nvidia stock is still a bargain, despite its market capitalization exceeding $4.6 trillion.

One way to evaluate its valuation metrics is to examine key indicators, such as the price-to-earnings ratio. Data shows that the company has a forward P/E ratio of 40. It is much lower than the five-year average of 45. It is also much lower than the sector median of 24.

In contrast, Tesla, a company whose deliveries plunged by 16% in the fourth quarter, has a forward P/E ratio of over 200. Also, Palantir, a company with much lower margins than Nvidia, has a forward P/E of over 300.

Analysts are highly bullish on the NVDA stock, with the average estimate being $252. A year ago, this figure was $164. The most bullish analysts predict a rise to $352, while the most cautious ones forecast a rise to $205.

NVDA Stock Price Technical Analysis

The 12-hour timeframe chart shows that the Nvidia stock price has rebounded over the past few days. It moved from a low of $171 on December 17th to its current level of $190.

It has remained above the 23.6% Fibonacci Retracement level and the 100-period Exponential Moving Average (EMA). The price has also formed a giant megaphone pattern, which is made up of two ascending and diverging trendlines.

Therefore, the most likely NVDA stock price forecast is bullish, with the next key resistance level to watch being the psychological level at $200. A move above that level will point to more gains, potentially to the all-time high of $212, followed by the psychological level at $250.