TSMC Regains Top 10 Global Value Ranking Amid AI Boom

Taiwan Semiconductor Manufacturing Company (TSMC) has once again secured its position among the world's top 10 most valuable companies. This resurgence is fueled by the ongoing optimism surrounding artificial intelligence (AI) within the tech industry, propelling TSMC's stock to unprecedented heights.

According to a Bloomberg report, TSMC experienced a remarkable 14% stock rally last week. This surge elevated the chipmaker's market capitalization to a record level, before settling at $634 billion after a minor 2% dip in early trading on Monday, March 11.

Despite this slight adjustment, the company maintains a market capitalization exceeding that of Broadcom, as highlighted in the report.

Analysts Weigh In

Analysts at Morgan Stanley and JPMorgan Chase & Co. anticipate further growth for the semiconductor giant, whose clientele includes industry giants like Apple, Nvidia, and Qualcomm. This optimistic outlook is based on the expectation of surging AI-related revenue and the company's strong pricing power.

"Generative AI semi is an obvious growth driver for TSMC," analysts from Morgan Stanley, including Charlie Chan, noted in a report last week. They also emphasized that the company's international expansion strategies contribute to mitigating geopolitical concerns.

TSMC's revenue witnessed a substantial 9.4% increase in the first two months of 2024. This growth is attributed to rising demand for high-end chips, driven by the wave of activity in the AI sector.

Nvidia's 'AI Boost'

Nvidia has also experienced a significant stock surge this year, fueled by the fervor surrounding generative AI.

Over the past month, Nvidia's stock price has increased by more than 20%. In the last six months, it has risen by over 90%. Furthermore, over the past year, Nvidia's stock price has appreciated from $234.36 per share to $875.28 per share – marking an impressive 275% increase.