Investors who have placed their trust in Taiwan Semiconductor Manufacturing Co (TSMC) can smile. The shares of the Taiwanese company have just broken 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 therefore just completed its best stock market performance since 1999. In detail, and as specified Bloombergits share price is up 82% this year. The reason for this enthusiasm 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 AI theme without having to pick a winner or technology, at a reasonable valuation. The next catalyst to watch will be Nvidia’s presentation at CES 2025 next month as well as TSMC’s upcoming results and forecasts.
Remember that TSMC has what it takes to come up with customers like Apple. Enough to enable it to post sales growth of 36% in sales for the December quarter and a gross profit margin of 58.3%, specifies Bloomberg.
Broadcom is also doing very well
These favorable prospects for TSMC are reminiscent of the good results observed by Broadcom this year. The value of its stock has indeed soared in recent months and has gained more than 100%, which means that the company has a market capitalization of more than 1,000 billion dollars. This brings it closer to tech giants such as Nvidia, Amazon, Alphabet, and even Apple.
We don’t have to look far for the reasons for this success yet: the AI chips that it is developing are enjoying great success. Each of these three large 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 performances on the stock market
- The company benefits from the rush to AI with its microchips
- Other companies have done well this year, notably Broadcom
