Taiwan Semiconductor Manufacturing Co. (TSMC) has regained its place in the list of 10 most valuable companies in the world, Artificial intelligence (AI) boom The tech industry That pushed its stock to record highs.
According to a Bloomberg report, TSMC’s stock rose 14 percent last week. A chip makerIts market capitalization hit a record high, before falling 2 percent in early trading on Monday (March 11), taking it to $634 billion.
However, the decline has not affected the company much as its market share is still high. Broadcomthe report noted.
What analysts have to say
Analysts at Morgan Stanley and JPMorgan Chase & Co. expect the semiconductor giant – which apple, Nvidia And Qualcomm As our customers—going further amid growing AI-related revenue and strong pricing power.
“Generative AI semiconductors are a clear growth driver for TSMC,” Morgan Stanley analysts including Charlie Chen wrote in a note last week. The company’s overseas expansion also helps mitigate geopolitical concerns, he said.
TSMC’s revenue rose 9.4% in the first two months of 2024 as demand for high-end chips increased due to a wave of activity in AI.
Nvidia gets ‘AI boost’
This isn’t the first time a chip company has seen its stock rise this year. This year, Nvidia was among the companies that got a boost from a frenzy around generative AI.
In the past month, Nvidia’s stock price has risen more than 20% while in the past six months, it has risen more than 90%. Additionally, in the past year, Nvidia stock price has risen from $234.36 per share to the $875.28 per share mark – an increase of 275%.
