AI Boom Pushes Taiwan’s TSMC to New Heights, Joins Trillion-Dollar Club

TSMC’s stock has reached all-time highs. Its market value has now surpassed $1 trillion, making it Asia’s most valuable business.

Thursday, Taiwan’s TSMC hit a record high after reporting strong second-quarter revenue thanks to rising demand for AI applications. This solidified its place as Asia’s most valuable company.This week, TSMC’s market value also went over a trillion dollars.

The AI craze has caused chipmaker stocks to rise all over the world. The rising demand for AI-capable chips has been especially good for Taiwan Semiconductor Manufacturing Co (TSMC), the world’s biggest contract chipmaker. Nvidia is one of its famous customers.

Since the beginning of the year, $4.8 billion has been put into Taiwan’s stock market, which is led by TSMC. Asian funds, on the other hand, HSBC says, are still underweight on Taiwan, which means more money could come in. This year, shares of TSMC, whose clients include Apple, have gone up almost 80%, much more than the 35% rise in the standard Taiwan SE Weighted Index.

TSMC’s Taipei-listed shares went up more than 2% to a record high of T$1,080 on Thursday. This made the company the most valuable publicly traded company in Asia, with a market value of T$28 trillion ($861 billion). The first TSMC ADRs were listed on the NYSE in 1997. On Monday, they went up 4.8% to a record $192.79, which quickly raised the company’s market value to $1 trillion. ADRs ended the day on Wednesday at $191.05.

Global Impact on Chip Stocks

Companies that work with AI, mostly chipmakers, have had a great year so far and saw big increases in market value in June.Last month, for a short time, Nvidia passed Microsoft to become the most valuable company in the world. The market prices of Nvidia, Microsoft, and Apple are all more than $3 trillion. Because of TSMC’s good results, chip stocks around the world went up. On Wednesday, the Philadelphia semiconductor index hit a new high by rising 2.4%.