By Adam Clark

Nvidia was rising early on Thursday as the market continues to digest the latest inflation data and gauges a surge in profit from the chip maker's supplier Taiwan Semiconductor Manufacturing.

Nvidia shares were up 2.1% at $139.09 premarket trading. The stock rose 3.4% on Wednesday amid a broad market rally following a mostly cooler-than-expected U.S. consumer inflation report

Nvidia investors could be encouraged by news from Taiwan Semiconductor Manufacturing, which reported a 57% rise in net profit for its December quarter, driven by strong demand for artificial-intelligence chips. TSMC is the main manufacturer of chips for Nvidia and its executives said they expect revenue from AI-related servers and processors to double in 2025.

The company continues to receive support from Wall Street analysts. Oppenheimer's Rick Schafer said Nvidia was one of his top picks in the semiconductor sector this year, with a $175 target price, in a research note on Wednesday. Schafer forecasts Nvidia will generate $172 billion in data-center revenue in 2025, which includes sales of AI chips.

"Nvidia is the largest volume producer of AI accelerators and the cost/bit leader in AI training. NVDA dominates the AI infrastructure market with their full-stack hardware/software," Schafer wrote.

Among other chip makers, Advanced Micro Devices was rising 1.5% and Broadcom was gaining 2.0% in premarket trading.

Write to Adam Clark at adam.clark@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

January 16, 2025 05:02 ET (10:02 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.