Taiwan Semiconductor Manufacturing, NYSE: TSM is on the rise after announcing yet another record-breaking quarter with revenue totaling NT$1.034 billion.
What TSMC recently said to its two largest customers, Nvidia Broadcom and Broadcom is perhaps even more important. This update justifies Intel’s (NASDAQ: INTC), 2026 investment.
Including gains from post-earnings, TSMC’s shares have risen by a staggering 145% compared to their 52-week-low.
TSMC gives a positive update on Intel’s stock
Taiwan Semiconductor told Nvidia as well as Broadcom, according to the “The Information”, that they couldn’t make enough chips.
TSMC is the leading manufacturer of advanced chip design, offering unparalleled scale and efficiency.
Artificial intelligence (AI), however, has created an industry-wide demand curve which even the most dominant foundry cannot stretch forever.
Hyperscalers compete for slots of priority, while the idea of unlimited scalability collides with physical limitations.
When Taiwan Semiconductor states “not enough”, this does not mean that demand has waned – but rather, customers are forced to find other options.
This TSMC announcement is good for INTC Shares
Intel’s stock has risen after TSMC released its update. This is mainly because the “confirmation” of what many people have been saying in recent months, that Intel does not need to replace Taiwan Semiconductor.
You can use it as a release valve in a stressed supply chain.
A multinational’s casting facility offers something of increasing value: capacity available, geographical diversification and alignment with US Industrial Policy.
When chipmakers or cloud giants are facing delays of several quarters, “available and reliable”, can be more important than “best in class but backlogged”.
Intel’s stock may be able to rally despite its mere second place position due to the size of AI demand.
It’s not about Nvidia and Broadcom leaving Taiwan Semiconductor, but about the overflow of demand into other fabs.
Intel may be able to accommodate custom silicon, accelerations and other workloads which cannot wait TSMC’s schedules. This will transform its foundry drive from a gamble for a quick turnaround into a strategy.
Intel Stock 2026: How to invest in it
TSMC’s latest update confirms one thing: Intel will benefit from AI tailwinds in a significant way, making its stock cheap at a P/S multiple of around 4.
INTC’s financial situation has improved after years of mistakes. Cost-cutting, divestitures and an increased focus on manufacturing have all helped to improve margins.
It seems prudent to buy INTC in 2026, with Taiwan Semiconductor’s supply being restricted and Intel having proven that its Core Ultra Series 3 (Panther Lake) chips can be produced at large scale.
Wall Street’s consensus rating for Intel is “Hold” at the moment, but its price target goes as high as $ 60, which indicates a potential 20% increase from this point.
This article TSMC has just released a warning that the warrants for buying Intel stocks may change as new information is revealed
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