TSMC Regains Top 10 Global Company Ranking Amid AI Chip Demand Surge

Taiwan Semiconductor Manufacturing Company (TSMC) has surged back into the ranks of the world's 10 most valuable companies, fueled by optimism surrounding the artificial intelligence (AI) revolution within the tech industry. This resurgence has driven TSMC's stock to unprecedented levels.

A Bloomberg report indicates that TSMC's stock experienced a remarkable 14% rally last week, propelling the chipmaker's market capitalization to a record high. Although an early trading dip of 2% on Monday, March 11, slightly reduced its value to $634 billion, the company's overall position remains strong.

The report further highlights that this minor setback has not significantly impacted the company, as its market share still surpasses that of Broadcom.

Analyst Perspectives

Analysts from leading financial institutions such as Morgan Stanley and JPMorgan Chase & Co. anticipate further growth for the semiconductor giant, which counts Apple, Nvidia, and Qualcomm among its prominent clients. This positive outlook is attributed to surging AI-related revenue and the company's robust pricing power.

Morgan Stanley analysts, including Charlie Chan, noted in a recent report that "Generative AI semi is an obvious growth driver for TSMC." They also emphasized that TSMC's ongoing overseas expansion efforts are helping to alleviate geopolitical concerns.

TSMC's revenue experienced a significant 9.4% increase in the first two months of 2024, driven by heightened demand for high-end chips due to the burgeoning AI sector.

Nvidia's "AI Boost"

TSMC isn't the only chip company benefiting from the AI wave. This year, Nvidia has also witnessed a significant stock surge driven by the generative AI frenzy.

Over the past month, Nvidia's stock price has climbed by more than 20%. In the last six months, it has soared by over 90%. Looking back over the past year, Nvidia's stock has skyrocketed from $234.36 per share to $875.28 per share, marking an impressive 275% increase.