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It was a historic Taiwan semiconductor company (TSM, Financial) Monday as its stock rose by 5% and hit $218, an all-time record above October's peak of $206 in 2024. TSMC added $56 billion to its market value, which rose to $892 billion, including a 5% rise in the share price. That followed US markets posting hefty gains on Jan 4, with the Dow Jones Industrial Average, Nasdaq Composite and Philadelphia Semiconductor Index all soaring.
The positive trend extended to TSMC's American Depositary Receipts (ADR), which rose $7.03, or 3.49%. "The demand for artificial intelligence (AI) technologies is quite robust, and hence, there is interest in TSMC's higher-end 3nm and 5nm semiconductor processes," market analysts say. These orders, which are in line with the slowdown, will help cushion another strong year for TSMC.
Investors at TSMC's upcoming investor conference on Jan 16 are scouring the Internet for signs of positive news surrounding the company's AI-driven strategies and market position. Securing the AI chip market is also good for TSMC, the world's top foundry supplier of semiconductors. It is seen as promising and optimistic enough for the company to want to leverage the market into booming demand for AI technologies so it can continue this trend of upwardness in 2025. That's a record-breaking performance that adds TSMC to the top of the semiconductor heap, and investors are excited that TSMC has far more in store.
This article first appeared on GuruFocus.