Nvidia is expected to report record quarterly sales, and that would be good news for its biggest chipmaking partner, TSMC.

• Nvidia's sales for the last quarter are expected to nearly double from a year ago, hitting a record high.
• TSMC makes Nvidia's chips and gets more than a fifth of its sales from the company, so strong Nvidia results tend to pull TSMC up with it.
• Nvidia is starting to ship its next-generation Vera Rubin AI chips, with orders for its AI chips over the next two years said to total around $1 trillion.
• Nvidia is reportedly planning to raise AI chip prices, and TSMC is expected to raise what it charges to make chips too.
• Analysts keep raising their profit forecasts for TSMC, and some see the stock roughly tripling over the next five years if growth holds.

Outlook: Nvidia's results land after the close on August 26, and a beat would likely spark another leg up for chip stocks.