Taiwan's chip giant TSMC transcended the trillion-dollar market value this week, moving ahead of Tesla's, the seventh most valuable technology giant on the stock market.
The semiconductor-maker posted strong second-quarter revenue on growing demand for AI applications, gaining the position of Asia's most valuable company, according to Reuters.
The AI frenzy has sparked a row in chipmaker stocks across the globe.
Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, has been highly profited from increasing demand for AI-capable chips.
Foreign investors have invested a total of $4.8 billion into Taiwan's stock market this year. However, according to HSBC, Asian funds are not very active in Taiwan and are waiting for future opportunities.
Shares of TSMC have escalated to 80 per cent this year, jumping from the 35 per cent benchmark of Taiwan SE Weighted Index.
On Thursday, TSMC's Taipei-listed shares increased by more than 2 per cent to a record T$1,080, taking the company's market value to T$28 trillion ($861 billion), which makes it Asia's most valuable publicly listed company. And on Wednesday, the company's ADR closed at $191.05.
"In an industry facing increasing tight supply, TSMC's value has to appreciate further in 2025 as customers bid to get sufficient capacity allocation," Daniel Tan, portfolio manager at Singapore-based Grasshopper Asset Management told Reuters.
Image Source: Taiwan Semiconductor Manufacturing Co, Ltd.
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