TSMC Reaches Record High on Surging AI Demand, Becomes Asia’s Most Valuable Company

TSMC Reaches Record High on Surging AI Demand, Becomes Asia’s Most Valuable Company
Image credit: TSMC

Taiwan's TSMC achieved a record high on Thursday, driven by strong second-quarter revenue and surging demand for AI applications. This success solidifies its status as Asia's most valuable company, with TSMC also surpassing a trillion-dollar market value this week. The global AI boom has triggered a rally in chipmaker stocks, and TSMC, the world's largest contract chipmaker with clients like AI leader Nvidia, has particularly benefited from this trend.

So far this year, foreign investors have injected $4.8 billion into Taiwan's stock market, predominantly focused on TSMC. However, HSBC notes that Asian funds still remain underweight on Taiwan, indicating potential for further investment inflow. TSMC's shares, which also count Apple among their clients, have soared nearly 80% this year, significantly outperforming the Taiwan SE Weighted Index, which has risen by 35%.

On Thursday, TSMC's Taipei-listed shares climbed over 2% to reach a record T$1,080. This surge boosted the company's market value to T$28 trillion ($861 billion), reinforcing its position as Asia's most valuable publicly listed company.