Nvidia's remarkable growth, driven by its pivotal role in the artificial intelligence (AI) sector, has significantly influenced the fortunes of its suppliers and partners. One notable example is the Taiwan Semiconductor Manufacturing Company (TSMC), whose shares briefly crossed the $1 trillion valuation mark on the New York Stock Exchange after a notable surge. TSMC's stock has soared nearly 80% year-to-date, reflecting the market's confidence in its crucial position in the tech supply chain. The company's shares on the Taiwan Stock Exchange also saw a rise, further demonstrating investor optimism.

Morgan Stanley's recent analysis suggests that TSMC might increase its full-year sales estimates, contributing to the stock's upward momentum. TSMC is instrumental in producing approximately 90% of the world's most advanced processor chips and is a key supplier to tech giants like Nvidia and Apple. Morgan Stanley analysts, led by Charlie Chan, indicated that TSMC's strategy of emphasizing the scarcity of its leading-edge foundry supply could drive future demand and potential price hikes. This approach, referred to as "hunger marketing," underscores TSMC's critical role in the tech industry and its leverage over customers seeking advanced chip manufacturing capabilities.

The ripple effects of Nvidia's success extend beyond TSMC. Dutch company ASML, a supplier of equipment to TSMC, has also benefited from this tech boom. ASML's shares reached a milestone, crossing 1,000 euros for the first time and marking a significant achievement. ASML's stock is up 42% year-to-date, making it one of the most valuable companies in Europe. This surge highlights the broader impact of Nvidia's rise on the semiconductor industry and the importance of companies like ASML in supporting the production of advanced chips. As ASML prepares to report its second-quarter results, the market will be closely watching for further indications of growth and profitability within this thriving sector.