TSMC Regains Top 10 Most Valuable Company Ranking Amid AI Boom

Taiwan Semiconductor Manufacturing Company (TSMC) has surged back into the ranks of the world's 10 most valuable companies, fueled by the ongoing artificial intelligence (AI) revolution sweeping the tech industry. The surge has driven TSMC's stock to unprecedented heights.

A recent Bloomberg report highlighted that TSMC's stock experienced a remarkable 14% rally last week. This surge significantly boosted the chipmaker's market capitalization to a new record. Although an early trading dip of 2% on Monday, March 11, slightly reduced the valuation to $634 billion, the company's overall position remains strong.

The report also noted that this minor setback has not significantly impacted the company, as its market share remains higher than that of Broadcom.

Analyst Perspectives

Analysts from prominent financial institutions like Morgan Stanley and JPMorgan Chase & Co. anticipate further growth for the semiconductor giant. TSMC's impressive clientele includes industry leaders such as Apple, Nvidia, and Qualcomm. The optimistic outlook is attributed to the escalating revenue generated from AI-related technologies and the company's robust pricing strategy.

According to a note released last week by Morgan Stanley analysts, including Charlie Chan, "Generative AI semi is an obvious growth driver for TSMC." Furthermore, the company's strategic expansion into overseas markets is seen as a positive step to mitigate potential geopolitical risks.

TSMC's financial performance in the first two months of 2024 demonstrated substantial growth, with revenue increasing by 9.4%. This surge is attributed to the heightened demand for high-end chips, propelled by the surge in AI-related activities across various sectors.

Nvidia's AI-Fueled Ascent

This year, Nvidia also experienced a significant boost from the fervor surrounding generative AI.

Over the past month, Nvidia's stock price has risen by more than 20%. The stock has surged over 90% in the last six months. Over the past year, Nvidia's stock price has jumped from $234.36 per share to $875.28 per share, representing a remarkable 275% increase.