Why Nvidia And Tesla Are Suddenly Knocking On Samsung's Door

A severe capacity crunch at Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is forcing major clients, including Nvidia Corp. (NASDAQ:NVDA) and Tesla Inc. (NASDAQ:TSLA), to seek alternatives, positioning Samsung Electronics Co. Ltd. (OTC:SSNLF) as a rare second source for cutting-edge chips. Capacity Crunch Disrupts AI Supply Chain Taiwan Semiconductor’s 3nm process has entered a rare state of “overload,” as chip designers and hyperscale cloud providers such as Amazon.com Inc. (NASDAQ:AMZN) and Microsoft Corp. (NASDAQ:MSFT) compete aggressively for limited capacity, Technode reported on Monday, citing DigiTimes and TechWeb reports. The supply crunch has turned Taiwan Semiconductor’s production capability into a key bottleneck, with demand far exceeding available capacity. The report added that this sharp mismatch between supply and demand is already interfering with the product development timelines of several companies. The industry is no longer dealing solely with rising costs driven by supply constraints. In the absence of adequate 3nm capacity, many companies are hesitating to commit to downstream orders. Securing capacity and managing procurement have now become more urgent priorities than advancing technology for leading chipmakers. Rivals Eye Opportunity As Demand Surges Taiwan Semiconductor has fully booked its 2-nanometer chip capacity through 2028 as demand from Nvidia Corp. (NASDAQ:NVDA), Advanced Micro Devices Inc. (NASDAQ:AMD), Apple Inc. (NASDAQ:AAPL), and others surges amid the AI boom, according to Taiwan’s Economic Daily. Even its future Arizona Fab 4, set for 2030 production, is already reserved. The supply crunch is creating an opening for Samsung Foundry, the only other player capable of producing 2nm chips. Samsung has secured orders from Tesla and Nvidia and may return to profitability this year, the Chosun Daily reported on Monday. Taiwan Semiconductor maintained its dominance in the pure-play foundry market, holding a 72% share in the fourth quarter, supported by strong demand for advanced nodes and AI-related chips, according to Counterpoint Research. Samsung ranked a distant second with a 7% market share as it continued working to improve yields and expand adoption of newer processes. TSM Technical Analysis TSM is trading 4.7% below its 20-day SMA and 1.4% above its 100-day SMA, a classic “short-term pressure, longer-term support” look. Shares are up 96.83% over the past 12 months and are sitting closer to their 52-week highs than lows, even after pulling back from the $390.20 peak. The RSI is at 40.45, which keeps momentum in neutral territory but closer to the “cooling off” side than the “overheated” side. Meanwhile, MACD is at -5.2745, below its signal line at -3.3022, suggesting bearish pressure that hasn’t fully abated yet. The combination of RSI in the 30–50 range and bearish MACD suggests mixed momentum. Key Resistance: $380.00 Key Support: $325.00 TSM Earnings & Analyst Outlook Looking further out, the next major catalyst for the stock arrives with the April 16, 2026 (estimated) earnings report. EPS Estimate: $3.27 (Up from $2.12 YoY) Revenue Estimate: $35.40 Billion (Up from $25.53 Billion YoY) Valuation: P/E of 31.5x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $401.67. Recent analyst moves include: DA Davidson: Initiated with Buy (Target $450.00) (February 13) Barclays: Overweight (Raises Target to $450.00) (January 16) TD Cowen: Hold (Raises Target to $370.00) (January 16) TSM Top ETF Exposure Invesco FTSE RAFI Emerging Markets ETF (NYSE:PXH): 6.23% Weight Dan IVES Wedbush AI Revolution ETF (NYSE:IVES): 5.81% Weight Harbor International Compounders ETF (NYSE:OSEA): 6.88% Weight Significance: Because TSM carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock. TSM Price Action TSM Price Action: Taiwan Semiconductor shares were up 0.28% at $327.65 during premarket trading on Monday, according to Benzinga Pro data. Photo via Shutterstock