Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) reiterated last week that it has not discussed potential investments or partnerships with any company, ending rumours regarding Intel (NASDAQ: INTC) linkups.
The contract chipmaker rejected a Wall Street Journal report that claimed Intel had approached Taiwan Semiconductor seeking either an investment in its manufacturing operations or a broader partnership.
The Taiwanese chipmaker stressed that it has never engaged in talks with any company to form a joint venture, license technology, or transfer know-how, the Taipei Times reported on Monday.
Also Read: Taiwan Semiconductor Unveils Ultra-Advanced Chip Tech
Intel stock has gained over 77% year-to-date, securing a 10% stake investment from the U.S. government, $2 billion from SoftBank Group (OTC: SFTBY), and a $5 billion pledge from Nvidia (NASDAQ: NVDA) earlier this month.
Taiwan Semiconductor Chair C.C. Wei has repeatedly dismissed speculation about a tie-up with Intel. Rumors of Taiwan Semiconductor buying into Intel coincided with its struggle to close the gap in semiconductor manufacturing technology.
Taiwan Semiconductor stock has gained over 38% year-to-date as a key Nvidia supplier.
On CNBC’s “Mad Money Lightning Round,” Jim Cramer recommended Nvidia when asked about Taiwan Semiconductor. For context, the $4.3 trillion Nvidia has topped the market caps of veteran Big Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), backed by the demand for its graphics processing units due to the AI frenzy.
Nvidia will invest up to $100 billion in ChatGPT parent OpenAI to secure billions in long-term revenue and reinforce its dominance in the AI market. The company signed a letter of intent to deploy at least 10 gigawatts of systems on its Vera Rubin platform starting in the second half of 2026.
Bank of America Securities analyst Vivek Arya said the move strengthens Nvidia’s role as OpenAI’s preferred compute and networking partner.
He estimated the initiative could generate $300 billion to $500 billion in revenue, three to five times the investment, and potentially make OpenAI account for 15% to 25% of Nvidia’s sales.
Arya argued that Nvidia is using free cash flow strategically, channeling it into ecosystem investments that expand its market, accelerate product timelines, and heighten competitive risks for peers such as Broadcom (NASDAQ: AVGO) and Advanced Micro Devices (NASDAQ: AMD).
Price Action: TSM stock was trading higher by 0.49% to $274.69 premarket at last check Monday.
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