Taiwan Semiconductor Manufacturing Co. Soars to Record High
A Quarter-Century High
Taiwan Semiconductor Manufacturing Co. (TSM) has reached unprecedented heights, with its shares touching a record high. This milestone marks the company’s best annual stock performance in 25 years, solidifying its position as the world’s largest contract chipmaker.
Riding the AI Wave
The stock surge is largely attributed to the continued investor enthusiasm for artificial intelligence trades. TSMC shares have skyrocketed by 82% this year, making it an attractive option for investors seeking to capitalize on the AI boom. According to Kevin Net, head of Asian equities at Financiere de L Echiquier, “TSMC remains the best way to play the AI theme without having to pick a winner or a technology, at a reasonable valuation.”
Key Clients Drive Growth
TSMC’s impressive client list, which includes tech giants Apple Inc. and Advanced Micro Devices Inc., has been a significant contributor to its success. The company is expected to report sales growth of 36% for the December quarter, with a gross profit margin of 58.3%, the highest since 2022.
Upcoming Catalysts
Investors are eagerly awaiting Nvidia’s presentation at CES 2025 next month, as well as TSMC’s upcoming results and guidance. These events are expected to provide further momentum to TSMC’s stock performance.
A Leader in the Chipmaking Industry
As the world’s largest contract chipmaker, TSMC has been a major beneficiary of the boom in AI spending. Its ability to adapt to changing market trends and capitalize on emerging technologies has cemented its position as a leader in the chipmaking industry.
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