TSMC Reclaims Spot Among World's Top 10 Most Valuable Companies Amid AI Boom

Taiwan Semiconductor Manufacturing Company (TSMC) has surged back into the ranks of the world's 10 most valuable companies, fueled by the artificial intelligence (AI) boom that has propelled its stock to unprecedented heights.

A Bloomberg report indicates that TSMC's stock experienced a remarkable 14% rally last week, driving the chipmaker's market capitalization to a record level. Although early trading on Monday, March 11, saw a 2% dip, it only slightly reduced the valuation to $634 billion.

Despite the minor setback, TSMC maintains a higher market share than Broadcom, according to the report.

Industry Analysts Weigh In

Analysts at Morgan Stanley and JPMorgan Chase & Co. foresee further growth for the semiconductor giant, which counts Apple, Nvidia, and Qualcomm among its clientele. Their optimism stems from escalating AI-related revenue and the company's strong pricing power.

"Generative AI semi is an obvious growth driver for TSMC," noted Morgan Stanley analysts, including Charlie Chan, in a recent report. They also highlighted that the company’s international expansion helps alleviate geopolitical concerns.

TSMC's revenue saw a 9.4% increase in the first two months of 2024, driven by rising demand for high-end chips due to the surge in AI activity.

Nvidia's 'AI Boost'

TSMC isn't the only chip company experiencing an upward trend this year. Nvidia has also benefited from the generative AI frenzy.

Over the past month, Nvidia's stock price has climbed more than 20%, and over the last six months, it has soared over 90%. Furthermore, in the past year, Nvidia's stock price has skyrocketed from $234.36 per share to $875.28 per share, marking a staggering 275% increase.