TSMC Reaches Historic Market Value of US$1.657 Trillion

The value of Taiwan Semiconductor Manufacturing Company’s (TSMC) American depositary receipts (ADRs) soared to a record high of US$1.657 trillion on March 15, 2024. This milestone positions TSMC as the sixth-largest publicly traded company globally, overtaking major technology firms like Meta Platforms Inc and Broadcom Inc. The surge in TSMC’s valuation is largely attributed to the ongoing boom in artificial intelligence (AI) and the company’s advanced manufacturing techniques.

As of the close of trading in New York, TSMC’s ADRs reflected its robust market performance, driven by significant demand in the AI sector. The company now stands as the second-largest semiconductor manufacturer worldwide, following Nvidia Corp, which maintains a market capitalization of US$4.597 trillion. Other tech giants trailing behind include Apple Inc at US$4.021 trillion, Alphabet Inc at US$3.806 trillion, Microsoft Corp at US$3.515 trillion, and Amazon.com Inc at US$2.421 trillion, according to data from CompaniesMarketCap.

TSMC’s shares, listed on the Taipei Stock Exchange, reached a new peak of NT$1,585 on the same day, elevating its total market value to approximately NT$41.1 trillion (around US$1.31 trillion). This upward trajectory follows a series of record-breaking performances in the company’s stock, reflecting strong investor confidence and favorable market conditions.

Looking ahead, TSMC is set to hold its earnings conference next Thursday. In anticipation of this event, investment advisory firm Aletheia Capital (Hong Kong) Ltd has boosted its revenue and earnings projections for TSMC for both this year and the next. Analysts Stefan Chang and Warren Lau noted that demand from cloud service providers and the increasing reliance on TSMC’s foundry services by companies like Advanced Micro Devices Inc (AMD) and Nvidia will significantly contribute to this growth.

The analysts predict that TSMC’s revenue and earnings could potentially double or even triple by 2025. This growth is expected to be fueled by a combination of capacity expansion, a more diverse product mix, increased utilization rates, and ongoing price hikes.

Furthermore, Aletheia Capital has revised its price targets for TSMC’s Taipei-listed shares, raising them from NT$2,100 to NT$2,400, while also increasing the target for its ADRs from US$450 to US$500. This optimistic outlook reflects a strong belief in TSMC’s continued leadership in the semiconductor industry during a time of rapid technological advancement.

As TSMC continues to innovate and adapt to market demands, its strategic position within the semiconductor landscape appears solid, paving the way for further growth and market leadership in the coming years.