Nvidia-Intel Partnership Reshapes Semiconductor Landscape: Implications for TSMC and Arm

TD Cowen's top analyst Krish Sankar projects long-term Ripple effects from Nvidia's $5 billion investment in Intel's foundry business. The collaboration to develop custom CPUs signals intensifying competition in chip manufacturing, particularly in AI-optimized silicon. While Sankar maintains a neutral $250 price target on TSMC—reflecting potential share losses to Intel's expanding foundry capabilities—he sees 19% upside for Arm Holdings as architectural innovation gains importance.

The semiconductor sector's 11% growth trajectory underscores escalating demand for specialized computing solutions. Sankar's track record lends weight to his assessment: ranked among the top 2% of analysts with a 61% success rate, his calls average 20.8% returns. TSMC's dominance faces new challenges as Nvidia diversifies its manufacturing partners, while Arm stands to benefit from the industry's shift toward customizable compute architectures.