Chip manufacturer TSMC briefly entered the elite trillion-dollar club on Monday, reflecting the ongoing AI frenzy driving tech stock values.
TSMC has a commanding stake in the global chip market, with over half of the world’s chip output under its control. The company’s cutting-edge chips power devices ranging from Apple’s iPhones to Nvidia’s AI hardware.
While the company’s market capitalization briefly exceeded $1 trillion during New York trading, it slipped slightly in later sessions. TSMC’s stock price has surged by more than 85 percent this year, mirroring the high demand for its products amidst the AI revolution.
The spike in TSMC’s valuation follows a similar trend seen with Nvidia, a major player in AI chips and software. Nvidia temporarily held the title of the world’s most valuable company last summer.
The soaring popularity of OpenAI’s ChatGPT has ignited a global craze for AI technology, driving up the need for advanced chips to support AI services.
Despite rising tensions between Taiwan, where most of TSMC’s fabrication facilities are based, and China, investors continue to show strong interest in the company’s shares.
Beijing’s claims over Taiwan have recently intensified, with increased military presence in the region. However, this has not deterred market enthusiasm for TSMC.
The company’s dominance in the chip industry combined with the AI boom has positioned TSMC as a key player in the global tech landscape, pushing its market capitalization to new heights.
