Taiwanese semiconductor company (TSMC) regained its place on the list of the world’s 10 most valuable companies, benefiting from optimism artificial intelligence (AI) boom in technology industry which sent its shares to record highs.
TSMC shares rallied 14% last week, according to a Bloomberg report chip manufacturerThe company’s market capitalization reached a record high, before Monday’s (March 11) drop in initial quotations by 2%, falling to USD 634 billion.
However, the decline did not have a major impact on the company as it still has a larger market share than Broadcomnoted in the report.
What analysts have to say
Analysts from Morgan Stanley and JPMorgan Chase & Co. they expect that the semiconductor giant – indeed, it did Apple, Nvidia AND Qualcomm as its customers – continue to grow thanks to growing AI-related revenues and powerful pricing power.
“Generative AI is a clear growth driver for TSMC,” Morgan Stanley analysts including Charlie Chan wrote last week. They say the company’s overseas expansion also helps ease geopolitical concerns.
TSMC’s revenue rose 9.4% in the first two months of 2024 as demand for high-end chips surged amid a wave of artificial intelligence activity.
Nvidia Gets ‘Artificial Intelligence Boost’
This isn’t the first time this year that the chip company’s shares have spiraled upwards. This year, Nvidia was among the companies that gained popularity thanks to the craze around generative artificial intelligence.
Over the last month, Nvidia’s stock price has increased by more than 20%, while in the last six months it has increased by more than 90%. Moreover, over the last year, Nvidia’s stock price has increased from $234.36 per share to $875.28 per share, an raise of 275%.
TSMC shares rallied 14% last week, according to a Bloomberg report chip manufacturerThe company’s market capitalization reached a record high, before Monday’s (March 11) drop in initial quotations by 2%, falling to USD 634 billion.
However, the decline did not have a major impact on the company as it still has a larger market share than Broadcomnoted in the report.
What analysts have to say
Analysts from Morgan Stanley and JPMorgan Chase & Co. they expect that the semiconductor giant – indeed, it did Apple, Nvidia AND Qualcomm as its customers – continue to grow thanks to growing AI-related revenues and powerful pricing power.
“Generative AI is a clear growth driver for TSMC,” Morgan Stanley analysts including Charlie Chan wrote last week. They say the company’s overseas expansion also helps ease geopolitical concerns.
TSMC’s revenue rose 9.4% in the first two months of 2024 as demand for high-end chips surged amid a wave of artificial intelligence activity.
Nvidia Gets ‘Artificial Intelligence Boost’
This isn’t the first time this year that the chip company’s shares have spiraled upwards. This year, Nvidia was among the companies that gained popularity thanks to the craze around generative artificial intelligence.
Over the last month, Nvidia’s stock price has increased by more than 20%, while in the last six months it has increased by more than 90%. Moreover, over the last year, Nvidia’s stock price has increased from $234.36 per share to $875.28 per share, an raise of 275%.
