(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s stock has hit a record high, with the world’s largest contract semiconductor maker poised 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 November 8 high, but then erased the gains and remained flat. The move came as U.S. semiconductor stocks, including major customer Nvidia, rose overnight. TSMC stock is up 82% this year as investor enthusiasm for artificial intelligence deals continues.
“For us, TSMC remains the best vehicle to tackle the AI theme at a reasonable valuation, without picking winners or technologies,” said Kevin Nett, head of Asian equities at Financière d’El Echiquier. ” he said. He added that the next thing to watch will be Nvidia’s presentation at CES 2025 next month and TSMC’s future results and guidance.
With a list of clients that also includes Apple Inc. and Advanced Micro Devices Inc., TSMC has been a big beneficiary of the boom in AI spending. The company expects sales to rise 36% in the December quarter and gross profit margin to be 58.3%, the highest since 2022.
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