TSMC’s ADRs Surge to Record US$1.657 Trillion, Ranking Sixth Globally

The value of Taiwan Semiconductor Manufacturing Co’s (TSMC) American Depositary Receipts (ADRs) reached a historic high of US$1.657 trillion on March 15, 2024. This milestone positions TSMC as the sixth-largest company globally by market capitalization, surpassing major tech firms like Meta Platforms Inc and Broadcom Inc. This surge comes amid a booming demand for artificial intelligence (AI) technologies, which has significantly boosted the semiconductor sector.

On the first trading day of the year in New York, TSMC’s ADRs reflected the company’s robust performance, driven by its advanced manufacturing techniques, including chip-on-wafer-on-substrate packaging. This advancement has solidified TSMC’s position as the second-largest semiconductor manufacturer after Nvidia Corp, which maintains the top spot with a market cap of US$4.597 trillion. Following Nvidia, Apple Inc and Alphabet Inc rank third and fourth, with market values of US$4.021 trillion and US$3.806 trillion, respectively.

In Taiwan, TSMC’s shares also achieved a new high, reaching NT$1,585 on March 15, 2024. This uplift translates to a total market value of approximately NT$41.1 trillion (around US$1.31 trillion), according to data from the Taiwan Stock Exchange. As attention turns to TSMC’s upcoming earnings conference scheduled for March 21, investment advisory firm Aletheia Capital (Hong Kong) Ltd has revised its revenue and earnings forecasts for the company.

Analysts from Aletheia Capital, including Stefan Chang and Warren Lau, noted that regardless of market dynamics—whether cloud service providers prioritize in-house application-specific integrated circuits (ASICs), or competitors like Advanced Micro Devices Inc (AMD) gain market share—TSMC remains a crucial player. The firm stated, “They all heavily rely on TSMC’s foundry services.”

Looking ahead, Aletheia Capital projects that TSMC’s revenue and earnings could more than double and triple from 2024 to 2025. This anticipated growth is attributed to several factors, including capacity expansion, a richer product mix, higher utilization rates, and ongoing price increases.

In light of its positive outlook, Aletheia Capital has also adjusted its price targets for TSMC’s shares, raising the estimate for its Taipei-listed shares from NT$2,100 to NT$2,400, and for its ADRs from US$450 to US$500. This optimism reflects confidence in TSMC’s ability to capitalize on the increasing demand for semiconductors amid the AI evolution.

As the semiconductor industry continues to evolve, TSMC’s recent achievements underscore its pivotal role in supporting global technology advancements.