TSMC Back in World's Top 10: AI Boom Fuels Chipmaker's Stock Surge

Taiwan Semiconductor Manufacturing Company (TSMC) has once again secured its position among the world's ten most valuable companies. This resurgence is largely attributed to the ongoing artificial intelligence (AI) boom that has propelled the tech industry and driven TSMC's stock to unprecedented levels.

A recent Bloomberg report highlights that TSMC's stock experienced a remarkable 14% surge last week. This rally elevated the chipmaker's market capitalization to a record high of $634 billion, before a slight dip of 2% in early trading on Monday, March 11th. Despite this minor setback, TSMC's market share remains higher than that of Broadcom, according to the report.

Analysts at leading financial institutions such as Morgan Stanley and JPMorgan Chase & Co. anticipate further growth for the semiconductor giant. Their optimism stems from the increasing revenue generated by AI-related products and TSMC's robust pricing power. The company's customer base includes industry giants like Apple, Nvidia, and Qualcomm, further solidifying its position.

Morgan Stanley analysts, including Charlie Chan, noted in a recent report that "Generative AI semi is an obvious growth driver for TSMC." They also emphasized that TSMC's international expansion efforts help to alleviate geopolitical concerns.

TSMC's revenue saw a significant increase of 9.4% in the first two months of 2024, driven by strong demand for high-end chips amid the surge in AI-related activities.

Nvidia's "AI Boost"

TSMC is not the only chip company experiencing a surge in stock value this year. Nvidia has also benefited significantly from the frenzy surrounding generative AI.

Over the past month, Nvidia's stock price has climbed by more than 20%. The stock has risen over 90% in the last six months. Furthermore, over the past year, Nvidia's stock price has appreciated dramatically, from $234.36 per share to $875.28 per share, marking an impressive 275% increase.