Taiwan Semiconductor Manufacturing Co. (TSMC) has regained its place on the list of the world’s 10 most valuable companies, riding on optimism. artificial intelligence Boom in (AI). TECHNOLOGY INDUSTRY That pushed its stock to record levels.
TSMC’s stock rose 14% last week, according to a Bloomberg report. chipmakerThe market capitalization set a record, equaling $634 billion, before falling 2 percent in early trading on Monday (March 11).
However, the decline has not affected the company much as its market share is still high BroadcomIt is mentioned in the report.
What analysts say
Analysts at Morgan Stanley and JP Morgan Chase & Co. expect the semiconductor giant—which Apple, Nvidia and Qualcomm As its customers—to move forward amid growing AI-related revenue and strong pricing power.
“Generative AI is a clear growth driver for Semi TSMC,” Morgan Stanley analysts, including Charlie Chan, wrote in a note last week. The company’s overseas expansion also helps ease geopolitical concerns, they said.
TSMC’s revenue rose 9.4% in the first two months of 2024 as demand for high-end chips grew due to a wave of activity in AI.
Nvidia Gets ‘AI Boost’
This isn’t the first time this year that the chip company has seen its stock on an upward spiral. This year, Nvidia was one of the companies fueled by the frenzy surrounding generative AI.
In the last month, Nvidia stock price has increased more than 20% and in the last six months, it has increased more than 90%. Moreover, in the last one year, Nvidia stock price has increased from $234.36 per share level to $875.28 per share mark – registering a 275% jump.