Taiwan Semiconductor Joins The Trillion Dollar Club, Surpassing Tesla: Report – Taiwan Semiconductor (NYSE:TSM) – Benzinga
Taiwan Semiconductor Manufacturing Co TSM joined the club of the world’s most valuable companies, further demonstrating the impact of the generative artificial intelligence (AI) revolution on Wall Street.
On Monday, Taiwan Semiconductor, listed in Taipei and New York, briefly surpassed the $1-trillion market capitalization barrier, overtaking Tesla Inc TSLA as the seventh-most valuable technology giant, the Taipei Times reports.
The milestone came as Alphabet Inc GOOG GOOGL, Apple Inc AAPL, and Meta Platforms Inc META hit all-time highs on the same day.
The top ten most valuable companies globally are now led by Microsoft Corp MSFT and Apple, followed by AI chip designer Nvidia Corp NVDA, both boasting valuations exceeding $3 trillion.
Taiwan Semiconductor reported preliminary second-quarter revenue growth of 32% year-on-year, reaching $20.67 billion, above the company’s projection of $19.6 billion—$20.4 billion. For June, the company clocked revenue growth of 33% year-on-year.
Taiwan Semiconductor’s rise highlights the increasing demand for semiconductors, driven by the growth of computing-intensive generative AI.
Wall Street brokerages raised their price targets for Taiwan Semiconductor, citing higher customer charges in 2025.
The surge in demand for chips has attracted investors and substantial government subsidies.
The Semiconductor Industry Association projects worldwide semiconductor sales to reach $611.2 billion this year, marking a record for the industry. Sales will likely increase by 16% this year and 12.5% next year.
Taiwan Semiconductor manufactures Nvidia’s products and controls over half the global semiconductor demand.
Price Action: TSM shares traded lower by 2.38% to $186.53 at the last check on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Jack Hong via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
