Chipmaker TSMC is back on the list of the 10 most valuable companies in the world – here’s what led to its return

Taiwan Semiconductor Manufacturing Company (TSMC) has regained a place in the list of the 10 most valuable companies in the world, riding the optimism of the artificial intelligence (AI) boom al technological industry which pushed its shares to record highs.
According to a Bloomberg report, TSMC shares rose 14% last week, pushing the chip makerIts market capitalization at a record high, before a 2% drop in early trading on Monday (March 11), brought it down to $634bn.
However, the fall did not affect the company much as it still has a higher market share than the Broadcomthe report notes.
What analysts have to say
Analysts at Morgan Stanley and JPMorgan Chase & Co. expect the semiconductor giant, yes Apple, Nvidia to swear Qualcomm like its customers, to further advance amid rising AI-related revenues and strong pricing power.
“Generative semi-AI 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 mitigate geopolitical concerns, they said.
TSMC’s revenue rose 9.4% in the first two months of 2024 as demand for high-end chips increased due to a surge in AI activity.
Nvidia gets an ‘AI boost’
This isn’t the first time this year that a chip company has seen its stock spiral upward. This year, Nvidia was one of the companies that got a boost from a frenzy around generative AI.
In the last month, Nvidia’s share price has increased by more than 20%, while in the last six months, it has increased by more than 90%. Additionally, in the past year, Nvidia’s stock price has appreciated from $234.36 per share to $875.28 per share, registering a jump of 275%.