TSMC Shares Touch Record High, Eying Best Year Since 1999 on AI

(Bloomberg) — Shares of Taiwan Semiconductor Manufacturing Co. hit a record high as the world’s largest contract chipmaker prepares to cap its best annual stock performance in 25 years.

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Shares rose as much as 1.4% in Taipei on Tuesday, briefly surpassing their Nov. 8 peak, before erasing gains to finish flat.The move came after U.S. chip stocks, including major customer Nvidia Corp. , soared overnight. TSMC shares are up 82% this year on continued investor enthusiasm for AI trading. in the background.

“For us, TSMC remains the best way to play the AI ​​theme without picking a winner or technology, at a reasonable valuation,” said Kevin Nett, head of Asia equities at Financiere de L’Echiquier.The next catalyst to watch will be Nvidia’s presentation at CES 2025. next month, as well as TSMC’s upcoming results and guidance, he added.

TSMC has been a major beneficiary of the AI ​​spending boom, with a client list that also includes Apple Inc. and Advanced Micro Devices Inc. The company is expected to post a 36% increase in sales and gross profit in the December quarter margin will be 58.3%, the highest since 2022.

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