TSMC Shares Reach Record High as Chipmaker Closes Strong Year
Taiwan Semiconductor Manufacturing Company (TSMC) shares touched a record high, as the world’s largest contract chipmaker is poised to cap its best annual stock performance in 25 years.
TSMC Shares Surge as AI Demand Booms
The stock climbed as much as 1.4 per cent in Taipei on Tuesday (Dec 24), briefly surpassing its Nov 8 peak, after gains in US chip stocks including key customer Nvidia overnight. TSMC shares are now up 84 per cent this year amid continued investor enthusiasm for artificial intelligence (AI) trades.
Analyst Views on TSMC’s Strength
“For us, TSMC remains the best way to play the AI theme without having to pick a winner or a technology, at a reasonable valuation,” said Kevin Net, head of Asian equities at Financiere de L Echiquier. The next catalyst to watch will be Nvidia’s presentation at CES 2025 next month as well as TSMC’s upcoming results and guidance, he added.
TSMC’s Client List and Financial Performance
With a client list that also includes Apple and Advanced Micro Devices, TSMC has been a major beneficiary of the boom in AI spending. The company is expected to report sales growth of 36 per cent for the December quarter, with a gross profit margin at 58.3 per cent, the highest since 2022.
Conclusion
TSMC’s strong stock performance is a testament to its position as the world’s largest contract chipmaker and its ability to capitalize on the growing demand for AI solutions. As the company continues to deliver strong results and guidance, investors are likely to remain bullish on its stock.
Frequently Asked Questions
Q: What has driven TSMC’s stock performance this year?
A: TSMC’s stock has been driven by investor enthusiasm for artificial intelligence (AI) trades, with the company’s shares surging 84 per cent this year.
Q: What are the next catalysts for TSMC’s stock performance?
A: The next catalysts to watch will be Nvidia’s presentation at CES 2025 next month as well as TSMC’s upcoming results and guidance, according to analyst Kevin Net.
Q: What is TSMC’s expected financial performance for the December quarter?
A: TSMC is expected to report sales growth of 36 per cent for the December quarter, with a gross profit margin at 58.3 per cent, the highest since 2022.
