TSMCTaiwan's stock market value hit $1 trillion for the first time last week, driven by an upward outlook and optimism about the prospect of strong demand for AI. This house isappleShares of companies that manufacture chips for Nvidia and Nvidia rose to a record high on Friday, up nearly 50% from their April lows. The company's market capitalization is currently equal toBerkshire HathawayThe company is on par, and if it rises further, it could put it among the 10 largest companies in the world by market capitalization.
TSMC's surge in shares reflects growing investor confidence that the world's top chipmaker will ride the AI boom to further dominance. The company last week raised its full-year revenue growth outlook for this year, which is expected to grow by about 30%, indicating that TSMC may benefit from fierce competition for AI manufacturing capacity.
After the release of TSMC’s quarterly financial report, analysts such as Bruce Lu of Goldman Sachs wrote that TSMC has a more positive attitude towards demand for advanced processes and that demand from AI customers shows no signs of slowing down. They expect even greater price increases in 2026.
JPMorgan analysts Gokul Hariharan and others wrote in a report late last week that strong spending by TSMC customers on AI and rising wafer prices will help mitigate the negative impact of a stronger Taiwan dollar and help strengthen the company's gross margin resilience.