AI Brings TSMC’s Market Value Closer to $1 Trillion

 AI Brings TSMC’s Market Value Closer to $1 Trillion: Optimistic voices about Taiwan Semiconductor Manufacturing Company (TSMC)
are growing increasingly louder amid a series
of stock price increases that bring its market value close to the $1 trillion mark.

 

Contents

Performance of Taiwan Semiconductor Manufacturing Company

The Role of AI Technology in TSMC’s Growth

Wall Street Evaluations

 Attractive Risk Reward

 

 

Performance of Taiwan Semiconductor Manufacturing Company

Last week, Taiwan Semiconductor Manufacturing Company (TSMC) surpassed Berkshire Hathaway Inc.
To become the eighth-largest company in the world by market value,
based on the company’s American Depositary Receipts (ADRs).
This year, a 73% increase in ADRs has driven TSMC’s market value to $932 billion, nearing the $1 trillion mark.

 

The Role of AI Technology in TSMC’s Growth

The leading chip manufacturing company has emerged as a major beneficiary of the expanding adoption of artificial intelligence.
Its advanced technology and reasonable valuation make it a favorite among global investors.
Additionally, the company has thrived as the primary supplier of advanced chips to Nvidia,
which recently became the world’s most valuable company.

 

Wall Street Evaluations

Wall Street investment banks raised their price targets for TSMC this week;
increased demand linked to artificial intelligence and potential price hikes in 2025 could boost profits.
JPMorgan Chase increased its revenue estimates from AI for the company to 35% of total sales by 2028,
while Citigroup raised its price target by 12% based on stronger profit expectations.
Goldman Sachs Group noted that chip manufacturing prices for the three and five-nanometer
nodes are increasing by “less than five percentage points” and raised its 12-month price target by 19% to NT$1,160.

 

Attractive Risk Reward

Goldman analysts, including Bruce Lo, wrote in a note on Tuesday:
“We now see a more attractive risk-reward for TSMC amid growing positive sentiment around AI.
With the ongoing spread of AI, we see TSMC as one of the main beneficiaries of this trend.”

 

AI Brings TSMC’s Market Value Closer to $1 Trillion.

TSMC sales experience a 60% increase

TSMC sales experience a 60% increase: The world’s largest chip manufacturer significantly exceeds revenue growth expectations
due to the high and increasing demand for artificial intelligence chips,
which coincides with the recovery of the consumer electronics sector.

 

Content:

TSMC’s share reaches its highest levels

The highest rise ever

 

 

 

TSMC’s share reaches its highest levels

Sales for Taiwan Semiconductor Manufacturing, abbreviated as “TSMC,” jumped 60% in April to NT$236 billion (US$7.3 billion),
driven by ongoing demand for artificial intelligence technologies as the consumer electronics sector begins to recover.

The world’s leading chip manufacturer greatly exceeded expectations this quarter, with sales increasing by 34.3% in March,
thanks to the high demand for artificial intelligence chips.
At the same time, the global smartphone industry saw growth in the first three months of the year,
including the highly competitive Chinese market,
which spurred demand for the traditional mobile chips produced by the Taiwanese company.

“TSMC,” based in Hsinchu, managed to overcome a weak demand for personal electronic devices last year,
which helped increase the acceptance of artificial intelligence chips produced by “Nvidia.”
Now, support for artificial intelligence coincides with growing consumer demand expectations,
despite TSMC’s CEO, C.C. Wei, warning about the pace of any recovery.

 

 

 

 

The highest rise ever

The company’s share price rose to its highest level ever in April,
as the chip manufacturer occupies a unique position to benefit from the rise of artificial intelligence technologies,
especially as it is the sole manufacturer of Nvidia’s highly advanced training chips.
In addition, TSMC manufactures semiconductors for “Apple,”
which recently announced a new range of “iPad” devices
and “Advanced Micro Devices, ” Nvidia’s main artificial intelligence chip race competitor.

“TSMC” announced on Friday that the company’s board of directors
approved a cash dividend distribution of four Taiwanese dollars per share.

 

TSMC sales experience a 60% increase

Artificial Intelligence Drives “TSMC” to Record First Profit Increase in a Year

Artificial Intelligence Drives “TSMC” to Record First Profit Increase in a Year: Taiwan Semiconductor Manufacturing” (TSMC),
a semiconductor manufacturer has recorded its first profit increase in a year,
thanks to the strong demand for artificial intelligence, which has rejuvenated growth in the world’s largest chip manufacturer on demand.

 

Content

Sales Growth

Artificial Intelligence Chances

Demand for AI Chips

 

 

 

Sales Growth

The chip manufacturer, which is also the main supplier for companies such as Apple and Nvidia,
recorded a 9% increase in its operating net income,
reaching 225.5 billion New Taiwan Dollars (approximately 7 billion US Dollars) in the first three months of this year.
This exceeded the average analyst expectations of 214.9 billion New Taiwan Dollars.

Last week, Taiwan’s largest company reported its fastest sales growth since 2022,
indicating that the demand for chips that accelerate the development of artificial intelligence
began to offset the negative impacts of the declining smartphone market.
This comes after Apple, which accounted for a quarter of TSMC’s revenue in 2023,
experienced a significant drop in iPhone sales in China.

 

Artificial Intelligence Chances

The market value of “TSMC” has increased by about 340 billion dollars since reaching its lowest level in October 2022,
benefiting greatly from the increasing global momentum in the development of artificial intelligence.
At the beginning of the year, the company set its capital expenditure
budget 2024 at between 28 and 32 billion dollars.

In January, the company expected its revenue to grow by at least 20% this year
thanks to the recovery of the broader semiconductor market despite the unstable conditions of the global macroeconomy.
Conversely, “ASML Holding” reported a 22% decrease in its first-quarter bookings on Wednesday.
“ASML” is the main supplier and the only provider of the world’s most advanced chip manufacturing machines.

 

Demand for AI Chips

In the long term, investors expect chips focused on artificial intelligence to gradually gain a larger share of revenues.
In January, TSMC announced that its artificial intelligence revenues are growing at an annual rate of 50%.

However, some investors warn that the current
level of demand for AI chips may not be sustainable in the long term.
Others remain concerned due to the escalating tensions around the Taiwan Strait,
a narrow waterway between China and the island it considers part of its territory.

 

Artificial Intelligence Drives “TSMC” to Record First Profit Increase in a Year