Welcome to the AI Boom: TSMC’s Rise in the Tech Industry
Taiwan Semiconductor Manufacturing Company (TSMC) has once again secured a position in the top 10 most valuable companies globally, benefiting from the optimism surrounding the artificial intelligence (AI) boom in the tech industry that has propelled its stock to record highs.
According to a recent report by Bloomberg, TSMC’s stock surged by 14% last week, reaching a new all-time high market capitalization of $634 billion, before experiencing a slight 2% decrease in early trading on Monday (March 11).
Despite this minor dip, TSMC remains a dominant force in the market, with a market share surpassing that of Broadcom, as highlighted in the report.
Insights from Analysts
Analysts from Morgan Stanley and JPMorgan Chase & Co. are optimistic about the future of this semiconductor giant, which serves tech giants like Apple, Nvidia, and Qualcomm. They anticipate further growth for TSMC driven by the increasing revenue related to AI technologies and its strong pricing power.
“Generative AI semiconductor is a clear growth driver for TSMC,” noted analysts from Morgan Stanley in a recent report. They also emphasized that the company’s expansion into international markets helps mitigate geopolitical risks.
TSMC has observed a 9.4% revenue increase in the first two months of 2024, largely due to the rise in demand for high-end chips propelled by the AI boom.
Nvidia Riding the AI Wave
Not only TSMC, but other chip companies are also benefiting from the AI phenomena. Specifically, Nvidia has witnessed a surge in its stock price this year, driven by the growing interest in generative AI.
In the past month alone, Nvidia’s stock price has climbed over 20%, and in the last six months, it has soared by more than 90%. Over the course of the last year, Nvidia’s stock price has more than tripled, reaching $875.28 per share from $234.36 per share.
This ongoing momentum in the tech industry, fueled by the AI boom, highlights the critical role that companies like TSMC and Nvidia play in driving innovation and shaping the future of technology.
