The year 2024 ends on a particularly positive note for TSMC (Taiwan Semiconductor Manufacturing Company), the largest semiconductor manufacturer in the world. The Taiwanese giant, Apple’s historic partner for the production of its chips, is experiencing its best stock market performance in 25 years. A success which perfectly illustrates the enthusiasm of investors for companies linked to artificial intelligence.
A record year driven by AI
TSMC shows a spectacular increase of 84% in its stock price over the year 2024, reaching a new historic high this Tuesday. This exceptional performance is largely attributed to the company’s strategic position in the artificial intelligence value chain. As a primary supplier to tech giants like Nvidia, Apple and AMD, TSMC directly benefits from the explosion of investment in the AI sector.
The financial results confirm this positive dynamic with an expected growth of 36% in sales for the last quarter of 2024. Even more impressive, the gross profit margin is expected to reach 58.3%, a level that has not been observed since 2022. As underlines Kevin Net, head of Asian equities at Financière de L’Echiquier: “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.”
A booming tech ecosystem
This achievement by TSMC is part of a broader context of exceptional performance for companies in the semiconductor sector. Broadcom, another major player in the sector and partner of Apple, saw its valuation exceed $1,000 billion in 2024, thus joining the very exclusive club of technological mega-caps alongside Apple, Nvidia, Amazon and Alphabet.
The outlook remains particularly encouraging for 2025, with several catalysts identified. Analysts are particularly watching Nvidia’s presentation at CES 2025 in January, which could have positive repercussions for the entire sector. For Apple, this situation is also favorable since its main chip supplier continues to demonstrate its ability to innovate and maintain its technological edge, a crucial element for future iPhones and Macs.
