TSMC's AI-Fueled Surge Propels Chip Giant Back Into World's Top 10 Most Valuable Companies

TSMC Reclaims Top 10 Spot Amid AI-Driven Tech Surge

Taiwan Semiconductor Manufacturing Company (TSMC) has surged back into the ranks of the world's 10 most valuable companies, propelled by the ongoing artificial intelligence (AI) boom that has driven its stock to unprecedented levels.

A recent Bloomberg report highlighted TSMC's impressive 14% stock rally last week. This surge significantly boosted the chipmaker's market capitalization. Although a slight dip of 2% occurred in early trading on Monday, March 11, the company still boasts a market capitalization of $634 billion, exceeding that of Broadcom.

Analyst Perspectives on TSMC's Growth

Analysts at Morgan Stanley and JPMorgan Chase & Co. are optimistic about the semiconductor giant's future, particularly due to the escalating revenue linked to AI and the company's robust pricing power. TSMC's client base includes major players like Apple, Nvidia, and Qualcomm, further solidifying its position in the market.

According to a note from Morgan Stanley analysts, including Charlie Chan, “Generative AI semi is an obvious growth driver for TSMC.” They also noted that the company's international expansion efforts contribute to mitigating geopolitical risks.

Revenue Surge Driven by High-End Chip Demand

TSMC's revenue saw a substantial increase of 9.4% in the first two months of 2024. This growth is largely attributed to the heightened demand for high-end chips, fueled by the rapid expansion of AI technologies.

Nvidia's 'AI Boost'

Nvidia has also experienced a significant boost this year due to the fervor surrounding generative AI. Over the past month, Nvidia's stock price has climbed by more than 20%, and over the last six months, it has soared by over 90%. Looking back over the past year, Nvidia's stock price has jumped from $234.36 per share to $875.28 per share, marking an impressive 275% increase.