Shares of Taiwan’s largest company, TSMC, experienced a notable 7.9% surge, propelling its capitalization to $575 billion. This increase of $42 billion enabled TSMC to surpass Visa, securing the 12th position among the world’s most valuable companies, as highlighted by Bloomberg.
Global Demand Resurgence:
This significant uptick in TSMC’s value was spurred by Morgan Stanley’s optimistic adjustment of the chip maker’s price target, marking its most substantial gain in over a year. The ripple effect continued as TSMC reported a 7.9% rise in January sales, signaling a promising recovery in global demand for consumer electronics.
AI Development Impact:
Amidst this financial evolution, investors are closely monitoring companies at the forefront of the accelerating AI development wave, notably influenced by OpenAI’s ChatGPT. Nvidia, with a market capitalization reaching approximately $1.82 trillion, has surpassed giants like Amazon and Alphabet, solidifying its position as a key player in AI development.
Tech-Driven Growth:
TSMC executives’ anticipation of robust growth this quarter and the commitment to increased capital spending in 2024 underscore the chipmaker’s confidence in the revival of demand for smartphones and computers, notes NIX Solutions. Taiwan’s tech-driven ascent, especially in AI, is evident as companies like Nvidia and TSMC shape the global technological landscape.