TSMC Regains Top 10 Global Company Ranking Driven by AI Demand

Taiwan Semiconductor Manufacturing Company (TSMC) has once again secured its position among the world's 10 most valuable companies. This resurgence is fueled by the ongoing optimism surrounding artificial intelligence (AI) within the tech industry, which has propelled TSMC's stock to unprecedented levels.

According to a Bloomberg report, TSMC's stock experienced a remarkable 14% rally last week. This surge elevated the chipmaker's market capitalization to a record high. Although early trading on Monday, March 11, saw a slight 2% dip, the company's market capitalization remained substantial at $634 billion.

This minor setback did not significantly impact TSMC, as its market share continues to surpass that of Broadcom, according to the report.

Analysts Weigh In

Analysts at Morgan Stanley and JPMorgan Chase & Co. anticipate further growth for the semiconductor giant, whose clientele includes industry titans such as Apple, Nvidia, and Qualcomm. This optimistic outlook is based on the expectation of surging AI-related revenue and the company's robust pricing power.

Charlie Chan and other Morgan Stanley analysts noted in a report last week that "Generative AI semi is an obvious growth driver for TSMC." They also emphasized that the company's international expansion efforts are helping to alleviate geopolitical concerns.

TSMC's revenue saw a 9.4% increase in the first two months of 2024. This growth is attributed to heightened demand for high-end chips, driven by the surge in AI-related activities.

Nvidia's 'AI Boost'

Nvidia has also experienced a significant upswing in its stock value this year, fueled by the fervor surrounding generative AI.

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