Taiwan’s TSMC, which cited strong second-quarter revenues on growing demand for AI applications, set a record high on Thursday, solidifying its position as Asia’s most valuable company.
Cementing its status as Asia’s most valuable firm, Taiwan’s TSMC (2330.TW) scaled a record high on Thursday after citing robust second-quarter sales on rising demand for AI applications. This week, TSMC exceeded a trillion-dollar market valuation as well. Why it’s essential Global chipmaker stock prices have surged due to the AI craze. The increasing demand for chips with AI capabilities has particularly helped Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker in the world, whose clients include AI poster child Nvidia (NVDA.O).
The $4.8 billion that foreign investors have invested in Taiwan’s stock market, which is dominated by TSMC, has been made thus far this year. However, Asian funds are still underweight in Taiwan, according to HSBC, indicating that more influxes may be possible. BY THE PIXELS The benchmark Taiwan SE Weighted Index (.TWII), which opens a new tab, is up 35%, while shares of TSMC, whose clients also include Apple (AAPL.O), have increased by over 80% this year.
With a gain of more than 2% to a record T$1,080 on Thursday, TSMC’s Taipei-listed shares became the most valuable publicly listed corporation in Asia, with a market value of T$28 trillion ($861 billion). First listed on the NYSE in 1997, TSMC’s ADRs saw a 4.8% increase on Monday to a record $192.79, momentarily pushing the company’s market worth beyond $1 trillion. The ADRs closed at $191.05.03 on Wednesday. On July 18, TSMC is scheduled to release its complete second-quarter earnings.
Chipmakers and other AI-focused businesses have had a strong year thus far, with significant increases in market capitalization in June. The most valuable business in the world, Nvidia (NVDA.O), briefly surpassed Microsoft (MSFT.O) and opened a new tab last month. The market prices of Apple, Microsoft, and Nvidia exceed $3 trillion. The Philadelphia Semiconductor Index (.SOX) opened a new tab, climbing 2.4% to a record on Wednesday as a result of TSMC’s excellent earnings lifting global chip stocks.
Daniel Tan, portfolio manager at Singapore-based Grasshopper Asset Management, stated that optimism regarding AI-related demand and possible pricing powers is still growing. “TSMC’s position as the leading foundry supplier should elevate earnings in 2025,” Tan added. “In an industry facing increasing tight supply, TSMC’s value has to appreciate further in 2025 as customers bid to get sufficient capacity allocation.”
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