image credit: https://www.tsmc.com
Taiwan’s TSMC became Asia’s most valuable firm on Thursday after reporting good second-quarter revenue on rising AI application demand.
The market value of TSMC exceeded $1 trillion this week.
Why it matters
Chipmaker stocks worldwide have rallied due to AI fever. The rising demand for AI-capable chips has benefited Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, whose customers include AI poster child Nvidia
TSMC dominates Taiwan’s stock market, which has attracted $4.8 billion in foreign investment this year. HSBC reports that Asian funds are still underweight on Taiwan, predicting more influx.
BY NUMBERS
TSMC shares, with customers including Apple, have risen about 80% this year, surpassing the Taiwan SE Weighted Index by 35%.
TSMC’s Taipei-listed shares jumped more than 2% to a record T$1,080 on Thursday, making it Asia’s most valuable publicly listed business at T$28 trillion ($861 billion).
TSMC’s ADRs, initially traded on the NYSE in 1997, rose 4.8% to a record $192.79 on Monday, briefly lifting its market worth above $1 trillion. On Wednesday, ADRs closed at $191.05.
TSMC will report full second-quarter earnings on July 18.
AI-focused companies, primarily chipmakers, have experienced significant market capitalization growth this year, particularly in June.
Last month, Nvidia briefly eclipsed Microsoft as the world’s most valuable firm. Nvidia, Microsoft, and Apple are worth over $3 trillion.
TSMC’s strong performance buoyed global chip stocks, sending the Philadelphia semiconductor index to a record on Wednesday.
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