
Taiwan's chip giant TSMC transcended the trillion-dollar market value this week, moving ahead of Tesla's, the seventh most valuable technology giant on the stock market.
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The semiconductor-maker posted strong second-quarter revenue on growing demand for AI applications, gaining the position of Asia's most valuable company, according to Reuters.
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The AI frenzy has sparked a row in chipmaker stocks across the globe.
Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, has been highly profited from increasing demand for AI-capable chips.
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Foreign investors have invested a total of $4.8 billion into Taiwan's stock market this year. However, according to HSBC, Asian funds are not very active in Taiwan and are waiting for future opportunities.
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Shares of TSMC have escalated to 80 per cent this year, jumping from the 35 per cent benchmark of Taiwan SE Weighted Index.
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On Thursday, TSMC's Taipei-listed shares increased by more than 2 per cent to a record T$1,080, taking the company's market value to T$28 trillion ($861 billion), which makes it Asia's most valuable publicly listed company. And on Wednesday, the company's ADR closed at $191.05.
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"In an industry facing increasing tight supply, TSMC's value has to appreciate further in 2025 as customers bid to get sufficient capacity allocation," Daniel Tan, portfolio manager at Singapore-based Grasshopper Asset Management told Reuters.
Image Source: Taiwan Semiconductor Manufacturing Co, Ltd.
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