TSMC on the trail of Nvidia: eighth company in the world and market cap at one trillion
Last week, the Taiwanese company outperformed Berkshire Hathaway. Since the beginning of the year, the stock has gained 73%.
2' min read
2' min read
The common denominator of the technological successes of companies like Nvidia and Apple is called TSMC. The Taiwanese company's semiconductors - the world's largest chipmaker - are as valuable and irreplaceable inside iPhones as they are inside Nvidia's GPUs that drive generative artificial intelligence. And that is why in the dance of the trillion-dollar companies the giant based in Hsinchu, south-west Taiwan, could soon enter.
TSMC's market cap now orbits around $1 trillion, behind the fantastic six of Wall Street (Nvidia, Apple, Microsoft, Amazon, Alphabet and Meta). And now the bullish chorus on the C. C. Wei-led company is getting even louder.
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Let's take a tiny step back: last week, TSMC overtook Berkshire Hathaway Inc. to become the eighth largest company globally in terms of market capitalisation (Wall Street's Big 6 plus Aramco).
Since the beginning of the year, the stock has gained about 75%. The foundry leader is now one of the main beneficiaries of the growing adoption of artificial intelligence. Not least because TSMC is in fact the main supplier of advanced chips to Nvidia, the new queen of the market in New York.
Wall Street brokers raised their price targets for TSMC this week, citing increased demand related to artificial intelligence and the potential for higher prices in 2025 to drive up earnings. JPMorgan Chase & Co. raised its AI revenue estimates to 35% of total revenue by 2028, while Citigroup raised its price target by 12% based on a stronger earnings outlook.
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