Taiwan Semiconductor Manufacturing Company (TSMC) regained a place in the list of the 10 most valuable companies in the world, riding the optimism of the artificial intelligence (AI) boom in the technological industry which pushed its stock to record levels.
According to a Bloomberg report, TSMC’s stock rose 14% last week, lifting the chipmakerThe market capitalization of the market at a record, before a drop of 2% in the beginning of trading on Monday (March 11), reduced to $ 634 billion.
However, the decline has not impacted the company much, as it still has a higher market share than that of Broadcomthe report noted.
What the analysts have to say
Analysts at Morgan Stanley and JPMorgan Chase & Co. they are waiting for the semiconductor giant – which has Apple, Nvidia and Qualcomm like its customers – to further advance amid rising AI-related revenues and strong pricing power.
“Generative AI semi is an obvious growth driver for TSMC,” Morgan Stanley analysts, including Charlie Chan, wrote in a note last week. The company’s overseas expansion also helps mitigate geopolitical concerns, they said.
TSMC’s revenue rose 9.4% in the first two months of 2024, as demand for high-end chips increased due to a wave of activity in AI.
Nvidia gets an ‘AI boost’
This isn’t the first time this year that a chip company has seen its stock on an upward spiral. This year, Nvidia was among the companies that got a boost from a frenzy around generative AI.
In the last month, Nvidia’s share price has risen more than 20%, while in the last six months, it has risen more than 90%. Also, in the last year, Nvidia’s stock price has appreciated from $234.36 per share to $875.28 per share – registering a jump of 275%.
