Taiwan Semiconductor Manufacturing Company (Taiwan Semiconductor Manufacturing Company)TSMC) has reclaimed a spot on the list of the world’s 10 most valuable companies, riding on optimism. artificial intelligence (AI) surge technical industry Which took its stock to record level.
According to a Bloomberg report, TSMC’s stock rose 14% last week, chip manufacturerIts market capitalization hit a record high of $634 billion, before falling 2% in early trading on Monday (March 11).
However, this decline did not have much impact on the company as its market share is still higher than broadcomThe report said.
What do analysts say
Analysts at Morgan Stanley and JPMorgan Chase & Co. expect the semiconductor giant — which is Apple, NVIDIA And Qualcomm As for our customers – to thrive amid growing AI-related revenues and strong pricing power.
“Generative AI Semi is a clear growth driver for TSMC,” Morgan Stanley analysts including Charlie Chan wrote in a note last week. He said the company’s overseas expansion also helps reduce geopolitical concerns.
TSMC’s revenue rose 9.4% in the first two months of 2024 as a wave of activity in AI boosted demand for high-end chips.
Nvidia gets ‘AI boost’
This is not the first time this year that a chip company’s stock has seen a rise. This year, Nvidia was among the companies that got a boost from the generative AI craze.
In the past month, Nvidia’s stock price has increased by more than 20%, while over the past six months, it has increased by more than 90%. Moreover, over the past year, Nvidia stock price has increased from $234.36 per share levels to $875.28 per share – registering an increase of 275%.