The artificial intelligence boom in the stock market has primarily driven Nvidia’s stock price higher as the company sells in-demand computing accelerators. At the same time, TSMC, which produces chips for these accelerators, became a beneficiary of this trend with some delay. However, TSMC is coming to the end of its best year since the end of the last century with a record high stock price.
Image Source: TSMC
On Tuesday morning, as noted by Bloomberg, TSMC shares in Taipei rose in price by 1.4% and immediately exceeded the peak value recorded on November 8 this year. The day before, American depositary receipts, which give investors in the United States access to the assets of this Taiwanese company, showed a 25% gap with quotes on the Taiwanese stock market. The enthusiasm of American investors was transferred to Taiwanese ones, as a result, TSMC shares in Taiwan reached a historical high of NT$1,100 per share.
Considering that since the beginning of this year, TSMC shares have risen in price by 84%, then for them the outgoing period has become the best since 1999. It is possible that Nvidia’s presentation of new products at the January CES 2025 exhibition will provide additional impetus for the growth of TSMC stock prices. In addition, the company’s quarterly report will be released later, which many investors are looking forward to. TSMC’s revenue in the fourth quarter of this year is expected to grow 36%, and its profit margin reached 58.3%, the highest since 2022.