The value of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) American depositary receipts (ADRs) reached a historic high on Friday, after the leading contract chipmaker’s Taipei-listed shares continued to break records amid an artificial intelligence (AI) boom.
TSMC’s ADRs surged 5.17 percent to US$319.61, valuing the company at US$1.657 trillion as of the close of the first trading day in New York this year, which propelled its market capitalization to the sixth-largest globally, surpassing tech giants such as Meta Platforms Inc and Broadcom Inc, data released by CompaniesMarketCap showed.
The jump, driven by strong AI demand and the company’s advanced manufacturing capabilities — such as chip-on-wafer-on-substrate packaging — placed TSMC as the second-largest semiconductor company after Nvidia Corp.
Photo: Bloomberg
Nvidia remained the world’s largest stock, with a market cap of US$4.597 trillion on Friday, ahead of Apple Inc at US$4.021 trillion.
Alphabet Inc ranked third with a market value of US$3.806 trillion, followed by Microsoft Corp at US$3.515 trillion and Amazon.com Inc at US$2.421 trillion, CompaniesMarketCap’s data showed.
TSMC’s Taipei-listed shares hit a new high of NT$1,585 on Friday, lifting its market value to NT$41.1 trillion (US$1.31) last week, Taiwan Stock Exchange data indicated.
Ahead of TSMC’s earnings conference on Thursday next week, investment advisory firm Aletheia Capital (Hong Kong) Ltd in a note raised its revenue and earnings projections for TSMC for this year and next year.
“Regardless of CSPs [cloud service providers] prioritizing in-house ASICs [application-specific integrated circuit], AMD [Advanced Micro Devices Inc] gaining share, or Nvidia’s continual rapid rise, [they] all heavily rely on TSMC’s foundry services,” Aletheia Capital analysts Stefan Chang (張玄志) and Warren Lau (劉華仁) wrote.
TSMC’s revenue and earnings could more than double and triple from 2024 to next year, with the growth being driven by “capacity expansion, a richer product mix, a higher utilization rate and ongoing price hikes,” the analysts said.
Aletheia Capital also raised price targets for TSMC’s Taipei-listed shares from NT$2,100 to NT$2,400 and its ADRs from US$450 to US$500, the note said.
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