TSMC back in world's top 10 most valuable companies on back of AI rally

Taiwan Semiconductor Manufacturing Company, better known as TSMC, is back in the top 10 list of the world’s most valuable companies, reports Bloomberg. The company’s stocks rose on the back of an increase in revenue of 9.4% which was driven by increased demand for high-end chips needed to power the AI boom. For the period including January and February, TSMC reported $12.6 billion in sales. 

In early trading on Monday, TSMC had a market cap of $634 billion, which made it more valuable than American semiconductor company Broadcom. Broadcom's shares have declined on rumors that Apple will swap out a part it supplies for the iPhone for one designed in-house from 2025. Before last week's earnings report, TSMC’s shares had also taken a hit from a decline in iPhone sales. TSMC’s cutting-edge fabrication technology has been favored by Apple for its custom iPhone silicon, making up 25% of TSMC’s revenue in 2023.

However, with demand for high-end AI chips powering its earnings growth, investors are jumping back TSMC’s shares with the AI boom expected to more than compensate for the current decline in iPhone sales. In addition to Apple, TSMC makes chips and tiles used in SoC fabrication for companies including NVIDIA, AMD, Qualcomm and even Intel, which has been using TSMC to help it fabricate its new chiplet-based 14th generation Meteor Lake chips.

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