Chip manufacturer TSMC returns to the list of the world’s 10 most valuable companies: Here’s what brought it back

A Taiwanese semiconductor company (TSMC) once again took a place on the list of the 10 most valuable world companies, riding on optimism artificial intelligence (AI) boom in technology industry which pushed its shares to record highs.
According to a Bloomberg report, TSMC shares rose 14% last week, lifting chip manufacturerrecord market capitalization, before a 2% drop in early trading on Monday (March 11), brought it down to $634 billion.
However, the downturn hasn’t affected the company much as it still has more than market share Broadcomstated in the report.
What analysts have to say
Analysts from Morgan Stanley and JPMorgan Chase & Co. they expect a semiconducting giant – which it is Apple, Nvidia and Qualcomm as their clients – to further thrive amid rising AI-related revenues and strong pricing.
“Generative AI semi is an obvious growth driver for TSMC,” Morgan Stanley analysts, including Charlie Chan, wrote in a note last week. The company’s overseas expansion 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 rose due to a wave of activity in artificial intelligence.
Nvidia gets ‘AI boost’
This isn’t the first time this year that the chip company has seen its stock on an upward spiral. This year, Nvidia was among the companies that got a boost from the generative artificial intelligence frenzy.
In the last month, Nvidia’s share price has increased by over 20%, while in the last six months it has increased by over 90%. Moreover, in the last year, Nvidia’s stock price has risen from $234.36 per share to $875.28 per share – a jump of 275%.