Taiwan Semiconductor Manufacturing Company (TSMC) has reclaimed its position among the world’s 10 most valuable companies, fueled by the optimism surrounding the artificial intelligence (AI) boom in the tech industry. The resurgence of TSMC’s stock, which soared to record highs, underscores its pivotal role in meeting the growing demand for advanced semiconductor technologies.
Last week, TSMC’s stock witnessed a remarkable 14% rally, propelling the chipmaker’s market capitalization to an all-time high. Although the stock experienced a slight 2% decline in early trading on Monday, its market value remained substantial at $634 billion, surpassing that of Broadcom.
Analysts from Morgan Stanley and JPMorgan Chase & Co. anticipate further growth for TSMC, driven by robust AI-related revenue and the company’s strong pricing power. With prominent clients such as Apple, Nvidia, and Qualcomm, TSMC is poised to capitalize on the expanding AI market, which is driving demand for high-performance semiconductor solutions.
“Generative AI semi is an obvious growth driver for TSMC,” noted analysts from Morgan Stanley, highlighting the company’s strategic focus on leveraging AI technologies. Additionally, TSMC’s global expansion efforts serve to mitigate geopolitical risks and reinforce its market position.
TSMC’s revenue surged by 9.4% in the first two months of 2024, fueled by heightened demand for high-end chips, particularly in the AI segment. The company’s consistent performance and innovation underscore its resilience in a dynamic market landscape.
Meanwhile, fellow chipmaker Nvidia has also experienced significant growth, buoyed by the AI frenzy. With its stock price soaring over 20% in the last month and registering a remarkable 275% jump over the past year, Nvidia exemplifies the transformative impact of AI technologies on the semiconductor industry.
As TSMC and Nvidia capitalize on the burgeoning AI market, their success underscores the pivotal role of semiconductor companies in driving innovation and shaping the future of technology.
