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
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.