Taiwan Semiconductor Manufacturing Company (TSMC) achieved a milestone Stock prices hit an all-time high on Thursday after strong second-quarter revenue led by rising demand for AI applications. The achievement means TSMC now claims to be the most valuable company in Asia, with its market capitalization surpassing the trillion-dollar mark this week.
The AI craze has fueled a global rally in semiconductor stocks, leading to substantial gains for TSMC, the world’s leading contract chip maker. TSMC’s customers include major AI players such as Nvidia, which has driven growing demand for AI-enabled chips.
Foreign investors have poured $4.8 billion into Taiwan’s stock market this year, driven mainly by TSMC’s dominance. Despite this inflow, HSBC says Asian funds still hold an underweight position in Taiwan, indicating the potential for additional investment.
TSMC’s stock has surged nearly 80% this year, buoyed by customers like Apple, significantly outperforming the Taiwan SE weighted index, which has risen 35%. On Thursday, TSMC shares rose more than 2% to a record T$1,080 in Taipei, boosting the company’s market value to T$28 trillion ($861 billion), securing its place as Asia’s top publicly listed firm. It is confirmed. Meanwhile, TSMC’s American depositary receipts (ADRs) rose 4.8% to an unprecedented $192.79 on Monday, taking its market cap briefly to $1 trillion, before closing at $191.05 on Wednesday.
AI-focused firms, especially chipmakers, have experienced notable gains this year, reporting a significant increase in market capitalization in June. Nvidia even overtook Microsoft for some time and became the most valuable company in the world.
Nvidia, Microsoft and Apple now each have a market cap of more than $3 trillion.
Written by Elias Noreika
