Taiwan’s TSMC (2330.TW) soared to a record high on Thursday after reporting robust second-quarter revenue driven by the surging demand for AI applications, solidifying its status as Asia’s most valuable company. This week, TSMC also surpassed a trillion-dollar market value.
WHY IT’S IMPORTANT
The AI boom has fueled a global rally in chipmaker stocks. Taiwan Semiconductor Manufacturing Co (TSMC), the world’s leading contract chipmaker and a key supplier to AI frontrunner Nvidia (NVDA.O), has greatly benefited from the increased demand for AI-capable chips.
So far this year, foreign investors have injected $4.8 billion into Taiwan’s stock market, heavily influenced by TSMC. However, according to HSBC, Asian funds still hold an underweight position on Taiwan, indicating potential for further investment.
BY THE NUMBERS
TSMC’s shares, which also cater to clients like Apple (AAPL.O), have surged nearly 80% this year, significantly outperforming the benchmark Taiwan SE Weighted Index (.TWII), which has risen 35%.
On Thursday, TSMC’s shares in Taipei climbed over 2% to a record T$1,080, elevating the company’s market value to T$28 trillion ($861 billion), making it Asia’s most valuable publicly listed company.
TSMC’s American Depositary Receipts (ADRs), first listed on the NYSE in 1997, surged 4.8% to a record $192.79 on Monday, momentarily pushing the company’s market value to $1 trillion. By Wednesday, the ADRs closed at $191.05.
TSMC is scheduled to announce its full second-quarter earnings on July 18.
AI-focused companies, primarily chipmakers, have enjoyed a strong performance this year, with significant gains in market capitalization in June. Nvidia (NVDA.O) briefly surpassed Microsoft (MSFT.O) last month to become the world’s most valuable company. Nvidia, Microsoft, and Apple each have market values exceeding $3 trillion.
TSMC’s impressive results boosted global chip stocks, with the Philadelphia semiconductor index (.SOX) rising 2.4% to a record high on Wednesday.
