- Taiwan’s TSMC achieved record-high stock prices and market value following strong Q2 earnings driven by AI demand.
- TSMC’s market cap exceeded $1 trillion this week, making it Asia’s most valuable listed company.
- The AI surge boosted chipmaker stocks globally, with TSMC benefiting significantly due to its role in AI-capable chip production.
- Foreign investments of $4.8 billion flowed into Taiwan’s stock market this year, largely driven by TSMC’s performance.
- TSMC’s shares rose nearly 80% in 2024, outperforming Taiwan’s stock index.
- The company’s ADRs hit record highs on NYSE, briefly pushing its market value over $1 trillion.
Main AI News:
Taiwan Semiconductor Manufacturing Co. (TSMC) soared to unprecedented heights on Thursday, buoyed by robust second-quarter earnings driven by soaring demand for AI applications, firmly establishing itself as Asia’s most valuable corporation.
TSMC’s market value eclipsed the trillion-dollar mark this week, underscoring its pivotal role in the global chipmaking industry amid the AI frenzy. The company, renowned as the world’s largest contract chipmaker and serving prominent AI innovators like Nvidia, has reaped substantial benefits from the burgeoning demand for AI-capable semiconductors.
This surge has not only propelled TSMC’s stock but has also catalyzed a broader rally in chipmaker shares worldwide. Foreign investments pouring $4.8 billion into Taiwan’s stock market this year, largely concentrated in TSMC, highlight its significance. However, Asian funds, per HSBC, remain cautiously positioned on Taiwan, suggesting potential for increased inflows.
TSMC’s shares surged nearly 80% year-to-date, significantly outpacing Taiwan’s benchmark index, which climbed 35%. On Thursday, TSMC’s Taipei-listed shares surged over 2% to a record T$1,080, propelling the company’s market capitalization to T$28 trillion ($861 billion) and solidifying its status as Asia’s most valuable listed company.
TSMC’s American Depository Receipts (ADRs), listed on the NYSE since 1997, surged 4.8% to a record $192.79 on Monday, briefly elevating the firm’s market value to $1 trillion. As of Wednesday, the ADRs closed at $191.05.
TSMC is set to unveil its full second-quarter earnings report on July 18, expected to further underscore its robust performance amidst the AI boom. Chipmakers, particularly those heavily invested in AI technologies, have seen substantial market cap gains throughout the year, with Nvidia briefly surpassing Microsoft last month to become the world’s most valuable company. Nvidia, Microsoft, and Apple now boast market valuations exceeding $3 trillion each.
The impressive performance of TSMC has not only lifted global chip stocks but also boosted the Philadelphia Semiconductor Index to record highs, rising 2.4% on Wednesday.
“Continued optimism surrounding AI-driven demand and potential pricing power positions TSMC to enhance earnings in 2025,” remarked Daniel Tan, portfolio manager at Grasshopper Asset Management in Singapore. “In an industry facing escalating supply constraints, TSMC’s valuation is poised for further appreciation as customers compete for adequate capacity allocation.”
Conclusion:
TSMC’s monumental achievement of surpassing the trillion-dollar mark amid the AI-driven market surge underscores its pivotal role in the semiconductor industry. The company’s strong financial performance and market dominance highlight not only its capability to meet rising AI demands but also its influence in driving global chipmaker stock trends.
