Taiwan Semiconductor Manufacturing Company (
TSMC
) regained its position on the list of the ten most valuable companies in the world, benefiting from optimism
artificial intelligence
(AI) Mutation in
Technology industry
This pushed its shares to record levels.
According to a report by Bloomberg, TSMC stock rose 14% last week, pushing up the stock price.
Chip maker
The Qatar Stock Exchange’s market capitalization reached a record high, before falling 2% in early trading on Monday (March 11), reducing it to $634 billion.
However, this decline did not affect the company much as it still has a higher market share than it does
Broadcom
The report noted.
What analysts say
Analysts from Morgan Stanley, JPMorgan Chase & Co. expect the semiconductor giant to have done just that
apple
,
Nvidia
and
Qualcomm
As its customers – to advance further amid rising AI-related revenues and strong pricing power.
“Semi-generative AI is a clear driver of growth for TSMC,” Morgan Stanley analysts, including Charlie Chan, wrote in a note last week. The company’s expansion abroad also helps ease geopolitical concerns, they said.
TSMC’s revenue rose 9.4% in the first two months of 2024 as demand for high-end chips increased due to a flurry of activity in artificial intelligence.
Nvidia gets ‘boosted artificial intelligence’
This isn’t the first time this year that a chip company has seen its stock on an upward spiral. This year, Nvidia was among the companies that got a boost from the obsession with generative AI.
In the past month, Nvidia’s stock price has risen by more than 20% while in the past six months it has risen by more than 90%. Furthermore, in the past year, Nvidia’s stock price has risen from $234.36 per share to $875.28 per share tick – marking a 275% jump.
