Why TSMC Is Driving Stock Market Counters to a Crash ?

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Investors who have placed their trust in Taiwan Semiconductor Manufacturing Co (TSMC) can smile. The Taiwanese company's shares have just set a new record on the stock market. The opportunity for us to look back on the flourishing year of this company.

Impressive results

TSMC has just closed its best stock market performance since 1999. In detail, and as specified by Bloomberg, its share price is up 82% this year. The reason for this craze is very clear: the explosion of transactions in the field of artificial intelligence where the company is well positioned with its electronic chips.

Quoted by the American media, Kevin Net, head of Asian equities at Financière de L’Echiquier, comments as follows:

For us, TSMC remains the best way to play on the theme of AI without having to choose a winner or a technology, at a reasonable valuation. The next catalyst to watch will be Nvidia's presentation at CES 2025 next month and TSMC's upcoming results and guidance.

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Let’s remember that TSMC has what it takes to see it through with customers like Apple. Enough to allow it to post sales growth of 36% for the December quarter and a gross profit margin of 58.3%, specifies Bloomberg.

Broadcom is also doing very well

This favorable outlook for TSMC is reminiscent of the good results observed by the company Broadcom this year. The value of its shares has indeed soared in recent months and has gained more than 100%, which gives the company a market capitalization of more than 1000 billion dollars. This brings it closer to tech giants such as Nvidia, Amazon, Alphabet, and Apple.

The reasons for this success are not far to look for: the AI ​​chips it develops are enjoying great success. Each of these three major customers could thus deploy a million AI chips in network clusters by 2027 to run this technology. More information in our previous article here.

What to remember:

• TSMC posts record stock market performance
• The company benefits from the rush towards AI with its electronic chips
• Other companies have managed to pull out all the stops this year, including Broadcom

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