TSMC (TSM, Financial), the world's largest chip foundry, has seen its Taiwan-listed shares reach a historic high, marking the best annual performance in 25 years. The stock rose 1.4% after U.S. chip stocks, including major client NVIDIA (NVDA), gained in the previous session. Fueled by investor enthusiasm for AI-related trades, TSMC's stock has surged 84% this year.
Kevin Net, head of Asian equities at Financiere de L Echiquier, remarked that TSMC remains the best way to invest in AI without having to pick specific winners at a justifiable valuation. Upcoming catalysts include NVIDIA's presentation at CES 2025 and TSMC's anticipated earnings and guidance release. Besides NVIDIA, TSMC's clientele includes Apple (AAPL) and AMD (AMD). The company, benefiting from a spike in AI-related spending, is expected to see a 36% sales increase for the December quarter, with a gross margin of 58.3%, the highest since 2022.
