Taiwan Semiconductor Manufacturing Company (TSMC) has reached an incredible milestone. The chipmaker’s market value briefly surpassed $1 trillion.
The achievement comes as Wall Street analysts raised their price targets for the company. TSMC’s American Depository Receipts (ADRs) saw a significant increase on Monday.
They rose 4.8% immediately after the New York Stock Exchange opened. This growth pushed the company’s stock price over 80% this year alone.
The Taiwanese chipmaker has climbed the ranks of valuable companies. It overtook Berkshire Hathaway in June to become the eighth most valuable firm in the world.
This ranking is based on ADRs, which trade at a premium to Taipei-listed shares. TSMC’s success stems from its unique position in the technology industry.
It is the sole supplier of major chips to tech giants Apple and Nvidia. This makes TSMC a top choice for global investors betting on AI advances.
TSMC’s resilience amid geopolitical tensions
The company’s growth continues despite rising tensions in the Taiwan Strait. Many Wall Street firms have raised their price targets for TSMC.
They cite growing AI-related demand and potential price hikes in 2025 as factors boosting earnings. TSMC’s ADRs have outperformed its shares in Taipei.
This is because they are more accessible to foreign investors. Unlike Taiwan shares, ADRs do not require special regulatory approval for conversion to US equivalents.
Analysts are optimistic about TSMC’s future. Morgan Stanley raised its price target by 9%. They expect TSMC to raise its full-year sales forecast in its next earnings report.
The broker also predicts that TSMC will raise silicon wafer prices due to its strong bargaining power. JPMorgan analysts also expect TSMC to raise its revenue forecasts.
They expect the company to present a more positive outlook on demand for AI accelerators. This optimism is shared by other brokers such as Nomura Holdings and Mizuho Securities.
TSMC’s revenue growth is projected to reach 36% year-over-year. That would be the fastest pace since the last quarter of 2022. The Taipei-listed company’s shares recently crossed New Taiwan Dollars 1,000.
A year ago, Warren Buffett’s Berkshire Hathaway sold its $5 billion stake in TSMC. The move underscored the geopolitical risks associated with China’s claim to Taiwan. Despite this, TSMC shares have continued to rise in both the US and Taiwan.
TSMC’s trillion dollar valuation reflects its pivotal role in the technology industry. As AI continues to advance, TSMC’s position as a leading chip supplier strengthens its importance in the global market.
