Taiwan Semiconductor Manufacturing Co. (TSMC) shares surged to an all-time high, underscoring a remarkable year for the world’s leading contract chipmaker, which is set to achieve its best stock performance in a quarter-century.
On Tuesday, the stock rose up to 1.4% in the Taipei capital market, momentarily eclipsing its previous peak from November 8, buoyed by the overnight rally in U.S. chip stocks, notably those of key partner Nvidia Corp. With sustained investor interest in artificial intelligence (AI) initiatives, the company’s share price has rocketed 84% this year.
Kevin Net, head of Asian equities at Financiere de L’Echiquier, expressed that TSMC represents a prime opportunity to invest in AI developments without the need to select a specific winner or technology, all while maintaining a reasonable valuation.
Meanwhile, the analyst also added that upcoming events to watch include Nvidia’s presentation at CES 2025 next month, as well as TSMC’s forthcoming earnings and guidance.
Benefiting significantly from the surge in AI spending, TSMC has garnered major growth, thanks in part to its high-profile clientele, including tech giants like Apple Inc. and Advanced Micro Devices Inc.
For the December quarter, the company is projected to achieve a 36% rise in sales, with an impressive gross profit margin reaching 58.3%, marking the highest margin since 2022.
