(Bloomberg) — Taiwan Semiconductor Manufacturing Co. shares touched a record high, as the world’s largest contract chipmaker is poised to cap its best annual stock performance in 25 years.
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The stock climbed as much as 1.4% in Taipei on Tuesday, briefly surpassing its November 8 peak, before erasing the gain to end flat. The move came after US chip stocks including key customer Nvidia Corp. rallied overnight. TSMC shares are up 82% this year amid continued investor enthusiasm for artificial intelligence trades.
“For us, TSMC remains the best way to play the AI theme without having to pick a winner or a technology, at a reasonable valuation,” said Kevin Net, head of Asian 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.
With a client list that also includes Apple Inc. and Advanced Micro Devices Inc., TSMC has been a major beneficiary of the boom in AI spending. The company is expected to report sales growth of 36% for the December quarter, with a gross profit margin at 58.3%, the highest since 2022.
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