TSM - Key Nvidia Supplier Closes In On Tesla Visa Market Caps After Adding $42B On Thursday: Can It Return To Top-10 Club? | Benzinga
Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) is on the brink of rejoining the world’s top 10 most valuable companies, with a market value of $575 billion, thanks to a $42 billion rally on Thursday, driven by optimism about artificial intelligence.
What Happened: TSMC, a crucial chip supplier for AI processors, experienced an almost 8% surge in its shares on Thursday, propelling its market value to $575 billion, Bloomberg reported. This places the stock just a $60 billion market cap away from companies like Visa, Broadcom, and Tesla. Once it surpasses them, it will rejoin the top-10 club, a position it briefly held in 2020.
The company’s shares have risen over 30% since late September, largely due to optimism about AI. Executives at TSMC, a key chipmaker for Apple and Nvidia, anticipate robust growth this quarter, with signs of recovery in smartphone and computing demand. Nvidia’s earnings, due on Feb. 21, could further fuel this growth.
"The surge in TSMC's stock price mirrors investor optimism about the future growth prospects of AI technology," said Bloomberg Intelligence analyst Charles Shum. "The company is the most critical supplier of Nvidia's AI chips," ...