Nvidia is not the only technology company to benefit massively from the AI boom. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract manufacturer of semiconductors, also experienced a significant market boost.
TSMC’s market capitalization recently briefly surpassed the $1 trillion mark, fueled by unprecedented global demand for its advanced processors. This milestone could be further solidified later this month when TSMC reports its quarterly results.
TSMC manufactures processors for all major global chip designers, such as Apple, Intel, Nvidia, AMD and Qualcomm. These processors are in high demand, so TSMC often has no real competition.
Expectations are high
The recent increase in TSMC’s market value comes as no surprise and is primarily due to the growing demand for AI semiconductors. According to TSMC, this market is expected to grow by 250% this year.
It’s fair to say that 2024 will be a pretty good year for the chipmaker. Back in April, the company was forced to evacuate workers and shut down operations after Taiwan was hit by the strongest earthquake in a quarter century. A few days later, the company received $6.6 billion under the CHIPS and Science Act to finance domestic semiconductor manufacturing on U.S. soil.
Although TSMC’s market cap has now dropped to $982.37 billion, the company still achieved a milestone as it became the first Asian company to reach a trillion dollar market cap. It currently ranks 8th on the list of the world’s largest companies, behind Meta at 7th with $1.348 trillion. Interestingly, Intel has a market cap of “only” $145.98 billion, putting the company far behind at 97th.
There is a high expectation that TSMC’s shares and market capitalization will increase after the announcement of its financial results for the second quarter of 2024. The company is expected to generate even higher revenues in the second half of the year as Tom’s Hardware says: “Companies like Apple, AMD and Intel are increasing production of their latest processors starting in the second quarter.”
