Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) took the ninth spot in terms of the market cap of its American depositary receipts (ADRs) in the global market on Monday, after overtaking Berkshire Hathaway Inc, run by US investment guru Warren Buffett, according to data released by companiesmarketcap.
Amid optimism over on-going negotiations between the US and China in London, the tech-heavy NASDAQ index rose 0.31 percent and the Philadelphia Semiconductor Index gained 1.96 percent overnight.
In line with a rally by US tech stocks, TSMC’s ADRs gained 0.89 percent on Monday to close at US$207, boosting the market cap of its ADRs to US$1.07 trillion, surpassing US$1.06 trillion claimed by Berkshire Hathaway shares, which fell 0.04 percent to end at US$493.33 in the day.
Photo: Ann Wang, Reuters
In the wake of the strong showing of semiconductor stocks in the US overnight, TSMC shares on the local main board rose 3.98 percent to end at NT$1,045 (US$34.84) yesterday, the highest closing level since Feb. 6, when the stock ended at NT$1,060.
The gains of TSMC, the most heavily weighted stock on the local market, contributed about 322 points to the rise of the TAIEX, which ended up 2.07 percent at 22,242.14.
The rally of TSMC pushed up the stock’s market cap in Taiwan by NT$1.03 trillion in one session to NT$27.09 trillion.
MasterLink Securities Corp (元富證券) analyst Tom Tang (湯忠謙) said TSMC is still traded at a relatively low price to earnings multiple of 17-18, compared with 31-32 recorded by American artificial intelligence (AI) chip designer Nvidia Corp, adding there is room for TSMC to play catch-up and move higher as global demand for AI applications stays strong.
TSMC yesterday reported its highest ever sales for May, with analysts attributing the strong showing to robust demand for the company’s high-end processes in the booming AI era.
The company posted NT$320.52 billion (US$10.71 billion) in consolidated sales last month, up 39.6 percent from a year earlier.
Last month’s figure was the second highest ever monthly sales in the company’s history, trailing a record high of NT $349.57 billion recorded in April, company data showed.
In the first five months of this year, TSMC generated about NT$1.51 trillion in consolidated sales, up 42.6 percent from a year earlier, it said.
According to MasterLink Securities, TSMC is forecast to rake in about NT$59 in earnings per share this year, compared with NT$45.25 last year.
MasterLink Securities’ forecast represented a downgrade from its earlier estimate of NT$61-62, by taking account of the impact resulting from a stronger New Taiwan dollar against the US dollar.
TSMC has said whenever the NT dollar appreciates against the greenback by 1 percent, its gross margin would fall by 0.4 percentage points.
Real estate agent and property developer JSL Construction & Development Co (愛山林) led the average compensation rankings among companies listed on the Taiwan Stock Exchange (TWSE) last year, while contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) finished 14th. JSL Construction paid its employees total average compensation of NT$4.78 million (US$159,701), down 13.5 percent from a year earlier, but still ahead of the most profitable listed tech giants, including TSMC, TWSE data showed. Last year, the average compensation (which includes salary, overtime, bonuses and allowances) paid by TSMC rose 21.6 percent to reach about NT$3.33 million, lifting its ranking by 10 notches
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