Taiwan Semiconductor Manufacturing (NYSE: TSM) is pushing higher on Thursday after posting yet another blockbuster quarter, marked by record revenue of NT$1.034 trillion.
But an even bigger story is perhaps what TSMC has recently told its lead customers — Nvidia and Broadcom — especially since that update warrants piling into Intel (NASDAQ: INTC) in 2026.
Including post-earnings gains, TSMC shares are up a whopping 145% versus their 52-week low.
Intel stock receives a bullish update from TSMC
According to “The Information”, Taiwan Semiconductor has informed both Nvidia and Broadcom that it can’t possibly make as many chips as they want.
For years, TSMC has been the ultimate enabler of cutting-edge chip designs – offering unmatched scale and efficiency at advanced nodes.
But artificial intelligence (AI) has created a demand curve that even the industry’s most dominant foundry can’t stretch indefinitely.
Lead times are lengthening, hyperscalers are competing for priority slots, and the notion of infinite scalability is colliding with physical limits.
And when Taiwan Semiconductor says “not enough”, it doesn’t mean demand is fading – it means customers must find alternatives.
Here’s why this TSMC update is positive for INTC shares
Intel stock is inching higher following TSMC’s update, primarily because it “confirms” what many have argued in recent months: Intel doesn’t need to replace Taiwan Semiconductor.
It can simply position itself as the release valve for a supply chain under strain.
The multinational’s foundry offers something increasingly valuable: available capacity, geographic diversification, and alignment with US industrial policy.
For chipmakers and cloud giants facing multi-quarter delays, “available and reliable” can outweigh “best-in-class but backlogged.”
For Intel stock, the sheer size of the AI demand means being a reliable second may prove sufficient for a sustainable rally.
This isn’t about leaders like Nvidia or Broadcom abandoning Taiwan Semiconductor – it’s about overflow demand spilling into other fabs.
In other words, custom silicon, accelerators, and adjacent workloads that cannot wait for TSMC’s timelines may find a home at Intel, transforming its foundry push from a turnaround gamble into a strategic opportunity.
How to play Intel stock in 2026
TSMC’s update makes one thing clear: Intel stands to benefit rather significantly from AI tailwinds, which makes its stock inexpensive at a price-to-sales (P/S) multiple of about 4.
Financially, INTC has stabilised after years of missteps, with cost-cutting measures, divestitures, and a renewed focus on manufacturing discipline, improving margins.
With Taiwan Semiconductor confirming its supply is restrained and Intel proving its 18A node does indeed work at scale following the recent launch of its Core Ultra Series 3 “Panther Lake” chips, it just seems prudent to invest in INTC stock in 2026.
While Wall Street has a consensus “hold” rating on Intel currently, its price targets go as high as $60, indicating potential upside of another 20% from here.
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