TSMC surges to record high on AI optimism, global chip rally

TAIWAN Semiconductor Manufacturing rose to its highest-ever level, tracking a global rally in chip stocks fuelled by optimism about artificial intelligence. 

The world’s top chip foundry jumped 5.2 per cent to close at NT$725 (S$30.89) in Taipei on Monday (Mar 4), a record since its stock listing in 1994. The surge lifted its market capitalisation to US$597 billion, one step closer to reclaiming a spot in the world’s 10 most-valuable companies.

TSMC has soared over 22 per cent so far this year, helping the local benchmark Taiex Index also reach a record high. The main supplier to Apple and Nvidia is considered a key beneficiary of the ongoing AI boom, with its executives expecting a return to solid growth this quarter amid signs of a demand recovery. Nvidia’s upbeat results last month further cemented investor optimism about the sector. BLOOMBERG